Worthington Industries adds to pressure-cylinder business
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bleeb
Contributor
FWIW, the Worthington press release mentions that SCI makes military and SCBA cylinders, but no mention of SCUBA.
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Worthington Industries to Acquire Structural Composites Industries
Expands Cylinder Product Line
COLUMBUS, OH, September 4, 2009 — Worthington Industries, Inc. (NYSE:WOR) announced today that its Worthington Cylinders business segment has purchased Structural Composites Industries, LLC (SCI).
SCI is a leading manufacturer of DOT-approved lightweight, aluminum-lined, composite-wrapped high pressure cylinders used in commercial, military, marine and aerospace applications. Product lines include cylinders for alternative fuel vehicles using natural gas or hydrogen, self-contained breathing apparatus (SCBA), aviation oxygen and escape slides, military applications, home oxygen therapy, and advanced & cryogenic structures.
SCI is located in Pomona, Calif., and has approximately 150 employees. Revenues were approximately $36 million in calendar year 2008. The transaction is expected to be modestly accretive in the first year.
“With this acquisition we continue to execute on our strategy to grow the pressure cylinder business, with a focus on broadening the portfolio beyond its original, core markets,” said Worthington Industries Chairman and CEO, John P. McConnell.
“SCI’s expertise in manufacturing composite cylinders and their strong management team are the perfect complement to our existing steel and aluminum product lines,” said Harry Goussetis, President of Worthington Cylinders. “This business is our entry into weight critical applications and it will expand our opportunities in the faster growing alternative fuels and SCBA sectors.”
About Worthington Cylinders
Worthington Cylinders is the world’s leading global supplier of pressure cylinders, continually delivering solutions to its customers while exceeding their expectations in quality, service and value. Worthington Cylinders offers the most complete line of pressure cylinders in the industry, including liquefied petroleum; refrigerant and industrial gas cylinders, airbrake tanks and consumer products.
About Worthington Industries
Worthington Industries is a leading diversified metal processing company with annual sales of approximately $2.6 billion. The Columbus, Ohio based company is North America’s premier value added steel processor and a leader in manufactured metal products such as light gauge steel framing for commercial and residential construction; framing systems and stairs for mid-rise buildings; pressure cylinder products such as propane, oxygen and helium tanks, hand torches, camping cylinders, and scuba tanks; current and past model automotive service stampings; metal ceiling grid systems; steel pallets and racks; and laser welded blanks. Worthington employs approximately 6,400 people and operates 61 facilities in 10 countries.
Safe Harbor Statement
The company wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 ("the Act"). Statements by the company relating to the expected benefits of the acquisition including the expected growth of the pressure cylinder business; increases to product lines; or opportunities to participate in certain markets; and other non-historical matters constitute "forward looking statements" within the meaning of the Act. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation: the possibility that costs or difficulties related to the integration of the business acquired are greater than expected; the ability to maintain relationships with customers of the acquired business; product demand and pricing, changes in product mix and market acceptance of products; fluctuations in pricing, quality or availability of raw materials, supplies, utilities and other items required by operations; the ability to realize price increases, cost savings and operational efficiencies on a timely basis; capacity levels and efficiencies within facilities and within the industry as a whole; financial difficulties of customers, suppliers, joint venture partners and others with whom the company does business; the effect of national, regional and worldwide economic conditions generally and within major product markets, including a prolonged or substantial economic downturn; the effect of adverse weather on facility and shipping operations; changes in customer spending patterns and supplier choices; acts of war and terrorist activities; the ability to improve processes and business practices to keep pace with the economic, competitive and technological environment; deviation of actual results from estimates and/or assumptions used by the company; the level of imports and import prices in the company’s markets; the impact of governmental regulations, both in the United States and abroad; and other risks described from time to time in filings with the United States Securities and Exchange Commission.
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Worthington Industries to Acquire Structural Composites Industries
Expands Cylinder Product Line
COLUMBUS, OH, September 4, 2009 — Worthington Industries, Inc. (NYSE:WOR) announced today that its Worthington Cylinders business segment has purchased Structural Composites Industries, LLC (SCI).
SCI is a leading manufacturer of DOT-approved lightweight, aluminum-lined, composite-wrapped high pressure cylinders used in commercial, military, marine and aerospace applications. Product lines include cylinders for alternative fuel vehicles using natural gas or hydrogen, self-contained breathing apparatus (SCBA), aviation oxygen and escape slides, military applications, home oxygen therapy, and advanced & cryogenic structures.
SCI is located in Pomona, Calif., and has approximately 150 employees. Revenues were approximately $36 million in calendar year 2008. The transaction is expected to be modestly accretive in the first year.
“With this acquisition we continue to execute on our strategy to grow the pressure cylinder business, with a focus on broadening the portfolio beyond its original, core markets,” said Worthington Industries Chairman and CEO, John P. McConnell.
“SCI’s expertise in manufacturing composite cylinders and their strong management team are the perfect complement to our existing steel and aluminum product lines,” said Harry Goussetis, President of Worthington Cylinders. “This business is our entry into weight critical applications and it will expand our opportunities in the faster growing alternative fuels and SCBA sectors.”
About Worthington Cylinders
Worthington Cylinders is the world’s leading global supplier of pressure cylinders, continually delivering solutions to its customers while exceeding their expectations in quality, service and value. Worthington Cylinders offers the most complete line of pressure cylinders in the industry, including liquefied petroleum; refrigerant and industrial gas cylinders, airbrake tanks and consumer products.
About Worthington Industries
Worthington Industries is a leading diversified metal processing company with annual sales of approximately $2.6 billion. The Columbus, Ohio based company is North America’s premier value added steel processor and a leader in manufactured metal products such as light gauge steel framing for commercial and residential construction; framing systems and stairs for mid-rise buildings; pressure cylinder products such as propane, oxygen and helium tanks, hand torches, camping cylinders, and scuba tanks; current and past model automotive service stampings; metal ceiling grid systems; steel pallets and racks; and laser welded blanks. Worthington employs approximately 6,400 people and operates 61 facilities in 10 countries.
Safe Harbor Statement
The company wishes to take advantage of the Safe Harbor provisions included in the Private Securities Litigation Reform Act of 1995 ("the Act"). Statements by the company relating to the expected benefits of the acquisition including the expected growth of the pressure cylinder business; increases to product lines; or opportunities to participate in certain markets; and other non-historical matters constitute "forward looking statements" within the meaning of the Act. Because they are based on beliefs, estimates and assumptions, forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from those projected. Any number of factors could affect actual results, including, without limitation: the possibility that costs or difficulties related to the integration of the business acquired are greater than expected; the ability to maintain relationships with customers of the acquired business; product demand and pricing, changes in product mix and market acceptance of products; fluctuations in pricing, quality or availability of raw materials, supplies, utilities and other items required by operations; the ability to realize price increases, cost savings and operational efficiencies on a timely basis; capacity levels and efficiencies within facilities and within the industry as a whole; financial difficulties of customers, suppliers, joint venture partners and others with whom the company does business; the effect of national, regional and worldwide economic conditions generally and within major product markets, including a prolonged or substantial economic downturn; the effect of adverse weather on facility and shipping operations; changes in customer spending patterns and supplier choices; acts of war and terrorist activities; the ability to improve processes and business practices to keep pace with the economic, competitive and technological environment; deviation of actual results from estimates and/or assumptions used by the company; the level of imports and import prices in the company’s markets; the impact of governmental regulations, both in the United States and abroad; and other risks described from time to time in filings with the United States Securities and Exchange Commission.
Of course I wish them well as one of the few high pressure steel SCUBA cylinder manufacturers, but I've heard reports of a fair number of premature failures with their HP tanks. My #1 dive buddy Andrea has a high pressure composite cylinder that she loves so I hope they do put out products of that nature.
Leadking
Contributor
SparticleBrane
Contributor
Dr. Bill doesn't like HP steel tanks because two of his failed, after he didn't realize they were rusting from the inside out due to wet fills on boats.
If you haven't noticed he has a vendetta towards HP steel cylinders.
If you haven't noticed he has a vendetta towards HP steel cylinders.
fppf
Contributor
While composite cylinders are nice and a must have for aerospace, CNG vehicles, and fire fighters. They really don't have a good place in scuba. Making a cylinder lighter in our application just means you need to then add weight to it so it wont float.
Also, composite cylinders have a finite life span, no matter what.
Also, composite cylinders have a finite life span, no matter what.
Please, let's not start more rumors here. I have no vendetta against HP steel tanks... I'd love to get another one to replace the two that failed.
I have heard reports from several shops and individuals here in SoCal that they have seen Worthingtons failing prematurely. These may be due to boat fills which are notoriously wet in our area, and can ruin a tank within a year. Perhaps in other parts of the country this has not been a problem with any of the HP steel tanks being made, but it is well known to be a problem here as documented in several threads right here on SB.
My PST tanks are NOT Worthingtons and my anger about the PST failures in no way is being transferred to Worthington. Only one of my PSTs failed from moisture inside the tank. The other failed due to over-expansion (probably a result of hot fills from another shop). I'd be quite happy if the statements I've heard represent a very small percentage since I'd like to get another HP 120.
Agree that composite cylinders have more limited lifetimes. I don't remember what Andrea said the expected lifespan of her composite tank is, but it was not long enough to convince me to buy one
I have heard reports from several shops and individuals here in SoCal that they have seen Worthingtons failing prematurely. These may be due to boat fills which are notoriously wet in our area, and can ruin a tank within a year. Perhaps in other parts of the country this has not been a problem with any of the HP steel tanks being made, but it is well known to be a problem here as documented in several threads right here on SB.
My PST tanks are NOT Worthingtons and my anger about the PST failures in no way is being transferred to Worthington. Only one of my PSTs failed from moisture inside the tank. The other failed due to over-expansion (probably a result of hot fills from another shop). I'd be quite happy if the statements I've heard represent a very small percentage since I'd like to get another HP 120.
Agree that composite cylinders have more limited lifetimes. I don't remember what Andrea said the expected lifespan of her composite tank is, but it was not long enough to convince me to buy one
fppf
Contributor
Most are 10 to 15 years, and most need hydro every 3 years, but there starting to go up to 5
The technology is there for non limited life composite tanks. Several companays in the US sell 30 year SCBA tanks and Interspiro sells non limited life SCBA and SCUBA tanks in Europe. SCI makes unlimited life SCBA tanks for the Euro market.
Most composite tanks now have a 5 year hydro cycle. It's mostly the older technology glass fiber tanks that are 3 year. Most of the carbon fiber cylinders are 5 year.
The Interspiro tanks are especially nice (but expensive) for SCUBA because even with the added weight to make them neutral, they are considerably lighter than anything else on the market of the same volume.
Maybe Worthington will come out with something similar for the US SCUBA market. SCI already makes a number of cylinder sizes that would be suitable.
Most composite tanks now have a 5 year hydro cycle. It's mostly the older technology glass fiber tanks that are 3 year. Most of the carbon fiber cylinders are 5 year.
The Interspiro tanks are especially nice (but expensive) for SCUBA because even with the added weight to make them neutral, they are considerably lighter than anything else on the market of the same volume.
Maybe Worthington will come out with something similar for the US SCUBA market. SCI already makes a number of cylinder sizes that would be suitable.
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