Quality Steel Corporation BFM 84

QUALITY STEEL CORPORATION

THE STRENGTH OF STEEL

QUALITY STEEL CORPORATION

THE HISTORY OF QUALITY STEEL CORPORATION, NORTH AMERICA’S LARGEST MANUFACTURER OF PROPANE STORAGE TANKS, IS A STORY OF STEADY GROWTH THAT IS SET TO CONTINUE.

THE STRENGTH OF STEEL

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QUALITY STEEL CORPORATION

Quality Steel Corporation (QSC), a leading manufacturer of propane storage tanks, anhydrous ammonia nurse tanks and other ASME-certified pressure vessels for domestic and commercial use, boasts a history of nearly seven decades. Founded by Lowry Tims in 1957, the company has continued to grow as a familyowned business, both organically and through acquisitions.

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SC’s President and CEO Sean Wessel, a representative of the third generation of the family, describes the beginnings of the business: “The founder, my wife’s grandfather, originally owned a gas company but saw a need in his business for higher quality propane tanks.

Early on, QSC was a regional player focused primarily on one size (250 gals) of a tank – selling in the states surrounding Mississippi. In those early years, our company was able to get production up to 45k

tanks per year with one facility in Cleveland, Mississippi, employing some 90 people.”

Mr Wessel, who came to work for the business in late-2015 as the Chief Financial Officer and moved to his current role in 2019 following his fatherin-law’s retirement, highlights the key milestones that have shaped the company: “In 2013, we acquired our largest competitor at that time, American Welding & Tank.

Overnight, we added two more facilities – one in West Jordan, Utah and

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Honor the Past, Seize the Future.

Three conveniently located distribution centers with over 400 different Tank Heads & Tank Accessories in-stock & ready to ship!

Custom formed Tank Heads & Stampings.

“Everyone thinks innovation is a manufacturing thing!

In our company it’s a people thing.”

Orange, California Commercial Metal Forming 341 West Collins Avenue Orange, CA 92867-5597

Saginaw, Texas Commercial Metal Forming 304 East McLeroy Saginaw, TX 76179-0426

Youngstown, Ohio Commercial Metal Forming P.O. Box 599 - Youngstown, OH 44501 (Mailing Address) 1775 Logan Avenue, Youngstown, OH 44505

Phone: +1 (800) 854-3307 Phone: +1 (714) 532-6321 Fax: +1 (714) 532-4126

Phone: +1 (800) 433-7040 Phone: +1 (817) 232-1040 Fax: +1 (817) 232-0213

Phone: +1 (800) 826-5363 Phone: +1 (330) 740-8300 Fax: +1 (330) 740-8599

www.cmforming.com

COMMERCIAL METAL FORMING (CMF) 2020 was a significant milestone for CMF as we recognized our 100th Year Anniversary; an accomplishment only achieved in the industrial manufacturing sector by .5% of all companies. Since 1920, we’ve evolved into an organization driven by a culture that accepts being responsible for the success of every person we touch. What we do in the business world is important, but the greatest impact is on those we touch in all aspects of our life. CMF has 3 manufacturing/distribution facilities – Youngstown, OH / Orange, CA / Saginaw, TX; propelled by an amazing group of 130 individuals that make up the Commercial Family. We are the largest privately held tank head manufacturer in the USA with the broadest range and most diverse set of capabilities in the market. Besides serving the U.S., Canada and Central America; we also export to the Middle East and South America.

The word transformation is commonly defined as a change to something different for the better. Inferred within the context of that definition is that once reached, it is a new final state. The contextual way we use transformation at CMF embraces a different endpoint; becoming a driving force for our continuous improvement and growth. The milieu for which we choose to use transformation is one that is infinite rather than finite.

Our drive is endless. Consequently, as we are transforming, we look to be acutely aware of opportunities to be uncovered that weren’t previously acknowledged or recognized; unmet needs that are new learnings which translate to future transformations. So, in the vernacular at CMF regarding transformation being infinite, we generate unending possibilities for continuous growth and improvement – in our people and in our actions.

Limitations, often self-imposed, restrict an organization; we as an organization don’t allow our scope of thinking to be limited. When we, the organization, believe that what we can conceive is limitless, infinite; what we can aspire to achieve is limitless.

The major Infinite Transformations of this past year can be summed up into three categories: • Innovation – realigning part of our manufacturing footprint with the installation of a closed loop manufacturing cell having unmatched product velocity; going from raw steel to a finished, packaged product.

• Learning Environment – realigned aspects of our business introducing deeper, integrated functionality.

• Talent Management – assessed and engaged the addition of a matrix performance system that compliments the in-place strength-based development plan.

The past year for CMF can be easily summed up as it’s not the challenges that we are faced with, but rather the opportunities we leveraged to excel. Instead of reacting to problems, we went on the offensive creating new paths for success. We grew individually and together in 2020; that’s the CMF way of doing things. www.cmforming.com

400 W. Railroad Street, Columbiana, Ohio 44408, USA Tel: +1 330-481-0200, Email: compcosales@compco.com, www.compco.com

Compco is America’s leading supplier of tank heads for the pressure vessel, water heater/storage, propane, and cryogenics industries. We operate mechanical and hydraulic presses with capacities ranging from 600 to 2,500 tons. For more than 65 years, Compco has focused on complete customer care, quality parts, and on-time delivery.

On Time Delivery.

On average, 98% of our shipments meet their target date.

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Quality Parts.

Consistently produced to our exceedingly high standards.

Complete Care.

Highly responsive teams with custom solutions from design to deliver.

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QUALITY STEEL CORPORATION

one in Fremont, Ohio - and increased staff numbers to 250 employees. More recently, in April 2019, our parent company LT Corporation acquired another family business – LP Cylinder Service, a tank refurbishment business with two facilities based in Shohola, Pennsylvania. And finally, in October 2020, LT Corporation added another family business with some 40 employees to the mix in the shape of the Buckeye Fabricating Company in Springboro, Ohio.”

He explained that the acquisitions significantly enhanced the product offerings and enabled the company to expand into new markets. While LP Cylinder allows the business to hedge the new propane tank manufacturing business by refurbishing vessels and tanks, Buckeye Fabricating Company has extended the portfolio further - Buckeye is an industry leader in the fabrication of custom-designed weldedsteel ASME pressure vessels and non-code tanks, serving a variety of end-users in multiple industries.

BASED ON FAMILY VALUES

Quality Steel’s success comes from the pursuit of unrivalled quality. The company commands a significant market share in the propane industry in the US and Canada, and together with its sister companies’ LP Cylinder and Buckeye and under the LT Corporation umbrella operates from six facilities in four states in three separate time zones, manufacturing and refurbishing vessels and cylinders for sale in all 50 states and 10 foreign countries, altogether employing more than 400 people.

Today, ownership of the company remains with both the family, who holds a majority of the stock, and with the employees

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owning the remainder through an Employee Stock Ownership Plan, established in 2004.

“Being a family-owned company, and not a division of some large conglomerate like many of our competitors, we are able to make changes quickly and react rapidly if consumers’ needs change. The partnership between employees and management promotes the focus on doing things right while maintaining the highest levels of quality.”

“BEING A FAMILY-OWNED COMPANY, AND NOT A DIVISION OF SOME LARGE CONGLOMERATE LIKE MANY OF OUR COMPETITORS, WE ARE ABLE TO MAKE CHANGES QUICKLY AND REACT RAPIDLY IF CONSUMERS’ NEEDS CHANGE.”

Lynn Hardin, Vice President of Sales and Marketing, who has been working for the company and participating in its development for over two decades, agrees that the human factor is key: “Our people are our great competitive advantage, as are the relationships we have been able to form with customers. We lead the industry with propane tanks in terms of lead times, delivery, quality and also with our customized delivery programmes.

The propane industry is a very small sector within the overall energy sector, made up of a lot of smaller companies; an industry where a handshake still means something.”

The family values have also helped to define the response to the Covid-19 pandemic, with the introduction of a range of safety measures and online staff meetings. “We made sure we protected our most important assets – our people, the core of the business. Our number one core value is Safety First. I firmly believe that these difficult times have made us a better company,” says Mr Wessel.

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QUALITY STEEL CORPORATION

“Unlike many others, the company did an excellent job,” adds Lynn Hardin, pointing out that the form of external relationships also needed to change. “We are a business heavily dependent on relationships that we have built, and those relationships need to be maintained. The various virtual platforms have worked very well for us, and - with a customer base spread across the US and Canada - have turned out to work even more efficiently than face-to-face interactions.”

INVESTING IN THE FUTURE

Despite the challenges of the pandemic, Mr Wessel insists that the company remains in robust shape, ready to face the future, and in line with the

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QUALITY STEEL CORPORATION

growing demand for propane tanks, is investing in increased capacity with two significant capital projects going on at two of its facilities – West Jordan, Utah and Fremont, Ohio.

In Fremont, roughly $13.9 million is planned to be invested over a period of five years, to add 40,000 square feet as part of an expansion of the facility.

The company broke ground in October with a targeted completion date of July 2021.

The West Jordan project follows a similar theme, increasing production area capacity, and enhancing office and meeting space for the company’s growing workforce.

Speaking about the longerterm strategy, Mr Wessel affirms that the intention is to continue to expand the company’s

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market share by maintaining and further enhancing its highquality products, excellent customer service and on-time delivery, through additional targeted capital investments in Quality Steel’s facilities. As before, people will remain at the core of the business, and investment in human resources, benefits, and training will continue to be an important part of the strategy.

“Our goal is to grow and diversify. Some of this growth will come organically while our parent company continues to seek and find suitable target companies that would further complement our core competencies, but also help us to diversify our product offerings for our customer base.”

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QUALITY STEEL CORPORATION

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