Ashland, Kentucky-based KES Acquisition Company d/b/a Kentucky Electric Steel (KES), a value-added manufacturer of Special Bar Quality (SBQ) and Merchant Bar Quality (MBQ) steel bar products and wholly-owned subsidiary of Optima Specialty Steel, Inc. (OSS), announced Wednesday that OSS has committed $6 million in capital to provide KES with the ability to produce high-quality round bars with diameters up to 3.75 inches. This significant investment is the first made by OSS since finalizing its acquisition of KES in February of this year.
As part of the rolling mill enhancement, KES will integrate new mill DC drives and advanced controls, guides, and rolls into the existing infrastructure at the Company's facility. In addition, KES will incorporate a ProScan Profile Measurement System and the appropriate ancillary mill handling equipment required to support the expanded operations and product line. Prior to this announced project, KES was only capable of producing flat and rectangular bars.
"This capital improvement project will not only enable us to diversify the existing high-quality flat bar offerings, it will also support enhanced quality control of our existing steel bar products and further increase the mill's overall productivity," said John Scheel, Vice President and General Manager of KES. "Our customers have long associated industry leading quality and service with our customizable flat and rectangular steel products, and we are excited to offer round bars with the same standard of excellence."
