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Michigan Seamless Tube Provides Update on $25 Million Capital Improvement Project

- New Atmosphere Controlled Furnace Now Operational -

- Cold Pilger Mill Slated for Installation in 2015 -

SOUTH LYON, Mich.--(BUSINESS WIRE)--Michigan Seamless Tube, LLC (“MST” or the “Company”), a leading manufacturer of high-quality carbon and alloy seamless cold-drawn tube and pipe, today announced that it has commenced operations of its new, 377 foot atmosphere controlled furnace. The purchase and installation of this furnace accounts for $6 million of the $25 million commitment made to MST by its parent company, Optima Specialty Steel, Inc. (“OSS”), one of North America's leading independent manufacturers of specialty steel products. The capital improvement project, designed to expand MST’s operations and increase production capacity, has allocated the remaining $19 million to fund MST’s acquisition of a highly specialized cold pilger mill and construction of a new facility to house the mill.

“We are thrilled to have successfully completed the first stage of our capital improvement project”

“We are thrilled to have successfully completed the first stage of our capital improvement project,” said Les Whitver, Vice President of Operations at MST. “The state-of-the-art furnace will accelerate material flow and provide our facility with the capacity to improve our products’ OD surface condition, further enhancing the value proposition that we provide to our customers. The capital infusion provided by OSS has played a crucial role in helping us grow our presence in South Lyon, and we look forward to continuing this expansion with the scheduled completion of our cold pilger mill addition in 2015.”

“Optima is dedicated to helping ensure that its subsidiaries have the infrastructure and resources necessary to stay competitive in the evolving specialty steel market, and our capital improvement project with MST is a perfect example of that commitment,” said Michael Salamon, President & Chief Operating Officer of OSS. “We want to establish MST and the entire OSS family as market leaders of value added steel solutions, and investing in our facilities’ production capabilities and infrastructure is a key strategy in achieving that goal.”

About Optima Specialty Steel, Inc.:

Optima Specialty Steel, Inc., headquartered in Miami, FL, is one of North America’s leading independent manufacturers of specialty steel products. Operating through its three wholly-owned subsidiaries, Michigan Seamless Tube, LLC, Niagara LaSalle Corporation and KES Acquisition Company d/b/a Kentucky Electric Steel, the organization leverages its technical expertise, skilled workforce and sophisticated equipment to produce highly engineered products, including seamless cold drawn tube and pipe, cold finished steel bars and flats and various SBQ and MBQ products. Optima Specialty Steel is dedicated to maximizing the value of its subsidiaries through strategic capital investments that serve to drive innovation, enhance operations, facilitate growth and maintain the highest levels of customer service.

About Michigan Seamless Tube:

Founded in 1927 and headquartered in South Lyon, MI, Michigan Seamless Tube, LLC (“MST”) has grown to become a leading manufacturer of high-quality carbon and alloy seamless cold-drawn tube and pipe for a variety of different industries including aerospace, mining, construction, automotive and agriculture. The Company’s modernized 320,000 square foot facility is capable of producing in excess of 40,000 tons of pipe and tube annually. Because of its size, advanced equipment and experienced workforce, MST is able to quickly process highly specialized orders – large or small – that meet clients’ exact specifications. The Company’s unparalleled flexibility, rigorous testing requirements, competitive pricing and logistical capabilities have allowed it to become the nation’s premier global supplier of cold-drawn carbon, alloy and high chrome mechanical and pressure tubing and piping. MST is a wholly-owned subsidiary of Miami-based Optima Specialty Steel, Inc. For more information, please visit: www.mstube.com.

Contacts

ICR for MST
John McKenna, 203-682-8200
John.McKenna@icrinc.com