DEMAND is growing for the expert further processing activities delivered at Millserve Teesside, which is helping steel manufacturers overcome production bottlenecks.
Millserve is in the final stages of agreeing new contracts which will see it involved in the provision of steel processing services to one of the world's largest steel makers.
The contract involves steel cutting up to 40,000 tonnes of steel per year; automated edge profiling up to 15,000 tonnes per year and manual defect rectification work of up to 6,000 tonnes.
The benefits of using Millserve include the ability to sell steel at finer tolerances than mill processes can consistently produce, and cutting to length which enables the customer to feed directly into its manufacturing process. Millserve offers full inspection and associated quality verification before the product is shipped to customer.
Additional value added services include automated shot blast and paint, and the ability to containerise finished product for deep-sea shipping all from the same Riverside Park site in Middlesbrough.
Millserve, which is part of the AV Dawson group of companies, was launched following a £1m investment in August 2010 and has processed more than 30,000 tonnes of steel since operations began, and has achieved the ISO9001:2000 quality standard.
Since acquiring the first saw, the business has expanded into a 20,000 square foot purpose built steel processing shed with a large external lay down area on the AV Dawson North Sea Supply base which houses three high capacity bandsaws and the UK's only steel grinding machine for the profile shaping of steel sections.
A major contract completed during the last 12 months included the haulage of more than 2,500 tonnes of steel section from Tata Skinningrove to Millserve for profile shaping before being loaded onto a ship only 100 meters away on the North Sea Supply base quayside, destined for the USA.
Gary Dawson, director of Millserve Teesside, said: "Millserve both complements and benefits from our existing business model exceptionally well given the other freight related aspects of the steel supply chain that AV Dawson is directly involved in, namely haulage, storage, containerisation and shipping of long steel product. Millserve is the only facility of its type in the UK that can process, paint and load to ships as big as 10,000 tonnes capacity from the same location.
"Activities undertaken such as sawing, profile shaping and rectification of steel products have added real value to our customers' products by ensuring that steel is ready for use as soon as it reaches the end user.
"Following the success of Millserve in its first year we're now looking to target new customers who require more exacting standards and 'user ready' steel bars including customers in the engineering and advance manufacturing sectors."