Dallas Business Journal 4-2-98
Headline: Manufacturers plan to grow with hot economy
(I am only posting the part of the article that is relevent to Stelax)
Asian flu
Nationwide, manufacturers expect to take a major hit from the ongoing Asian financial crisis, according to a survey by the National Association of Manufacturers, in Washington, D.C.
"Clearly, manufacturers believe that the worst is yet to come in Asia," said Jerry Jasinowski, NAM's president. But the Asian contagion has translated into benefits for some manufacturers in North Texas.
For example, the flu opened up a new market for Stelax Industries Ltd. of Dallas. The stainless steel maker has seen its cash flow take a hit when Asia's crisis sunk prices of stainless steel.
But that dark cloud has had a silver lining, said Harmon Hardy, Stelax CEO. The company's patented Nuovinox product, a cheaper alternative to stainless steel, can now compete against even cheaper galvanized steel products. Nuovinox contains 22% stainless steel.
"Stainless steel is 80% of our costs," said Hardy. "With the lowering of the price, we can be competitive in areas like galvanized steel where we're normally not competitive." |
