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McDONALD -- McDonald Steel Corp. and General Steel Corp., Cleveland, have announced the acquisition of General Steel assets by Mac Steel GSC Inc., a subsidiary of McDonald Steel.
McDonald Steel Corp., 100 Ohio Ave., is a producer of custom engineered hot-rolled shapes, and General Steel Corp. is a steel service center specializing in the processing of steel plate.
General Steel will continue to operate as a stand-alone enterprise in Cleveland.
Financing for the acquisition was provided by Huntington Bank's Commercial Banking Group in Youngstown.
"We pursued this acquisition because General Steel's precision plate processing capabilities are a natural complement to our broad line of specialty hot- rolled shapes," McDonald Steel President Jim Grasso said. "Our partnership will enable us to more fully serve our current customers, particularly those related to rail transportation and infrastructure reinvestment, and will pave the way for increased penetration of the construction and agriculture markets."
Bill Bresnahan, chairman and CEO of McDonald, added: "In addition to the important marketing considerations, the acquisition of General Steel represents a significant step in the long-planned diversification of our production capabilities.
"We are enthusiastic about the opportunities for our company and its employees created by bringing these two outstanding organizations together," Jim LaMantia, president and owner of General Steel, said. "Our teams are highly professional and widely respected, and I believe that will give us a real advantage in the steel- processing industry going forward."
McDonald Steel Corp. was founded in 1981 by a group of local investors who saw opportunity in the recently shuttered McDonald Works of U.S. Steel. Over the past 41 years, the management and employees of McDonald have expanded its product offerings to more than 500 symmetrical and asymmetrical hot-rolled shapes. These shapes are used in the production of bridge decking and expansion joints, wheels for both on- and off-road applications, automotive door hinges, spigot sections and a number of applications in the rail and railcar industry.
General Steel specializes in flame and plasma cutting of steel plate. The company performs complex processing in-house, on state-of-the-art high-definition plasma and oxy-fuel burning machines, as well as other ancillary services including beveling, heat treating, forming, shot blasting, grinding and milling.