North America Today 1Tri-Arrows Aluminum Inc.Feature - North America Today 1

Tri-Arrows Aluminum Inc.Harnessing the Synergistic Powers of
the UACJ Group to Meet Demand in
a Rapidly Growing Market

Profile

Henry Gordinier
President, Tri-Arrows Aluminum, Inc.

Henry Gordinier began his career in financial risk management in metal trading and then joined ARCO Aluminum (presently TAA) in 1999, where he engaged in risk management and business management. He left the aluminum industry and moved on to health care, where he was involved in risk strategy. His heart, however, remained in the aluminum business. He returned to the company (presently TAA) in 2014, where he was appointed to the position of president in June 2016.

Special Features and Strengths of the Company

Having decades of experience and accumulating abundant technological prowess since its establishment, Tri-Arrows Aluminum, Inc. (TAA) has become a highly competitive aluminum manufacturer in the U.S.A. One of its strengths is owning a majority share of the Logan Mill, the world’s largest and most cost-competitive rolling mill. Accordingly, the company is well prepared to take on the growing demand for aluminum; a market that is set for rapid expansion.

Global aluminum rolling mills have an annual production capacity on the scale of approximately 18,000 tons per year. The Logan Mill boasts a production capacity of approximately 900,000 tons per year, and TAA will soon have a production line capable of producing 300,000 tons per year.

An important advantage to all of this is that over 80 percent of the materials procured for manufacturing are recycled aluminum. This contributes to reducing environmental impact, while also increasing competitiveness by lowering the cost of resource materials.

Yet another key strength of TAA is a self-reliant, proactive workforce. Truly valuing its employees, the company has built a strong and resilient culture: each employee is nurtured to understand his/her role and the importance of teamwork. As a result, all members work well together while personally striving to improve production efficiency. Commented company president, Henry Gordinier, “In the past, we needed to find ways to manage costs and increase volume without a lot of capital. This required a tremendous amount of innovation and a culture that knows how to get things done. Pairing that culture with our parent company, where aluminum is the core element, you have a very strong combination.”

Benefits of Being Part of the UACJ Group

The UACJ Group is committed to becoming a global leader in the aluminum industry, which brings new dimensions of business to TAA. Gordinier continues, “While Tri-Arrows Aluminum is based in, and focuses on, the North American market, UACJ has close ties to Asia. This partnership gives us a better understanding of the Asian markets and will help position us to be more competitive as we merge into the global marketplace. As a result, new energy is emerging from within the company.”

Exchanging information with various members of the UACJ Group has become a regular activity. This has led to more opportunities for collaboration and the realization of various synergies, some of which are assisting the Logan Mill and the transitional growing pains of adding operations to produce and sell automotive body sheet for the automotive industry. TAA established a cooperative working arrangement with Constellium-UACJ ABS that covers a variety of areas, including the management of internal process scrap and enhancements for elemental production materials to improve quality and performance. Publicly traded companies in America tend to focus on quarterly performance, and that can be detrimental to strategic planning that is longer-term in nature. Gordinier adds, “My experience with our Japanese owners is that strategic decisions consider a span of 10 or 20 years. For me, this was an extremely refreshing perspective to consider in business strategic planning. I believe that UACJ’s decision to purchase an equity stake in the Logan Mill is a reflection of that long-term perspective. In coming together with UACJ, we will have a basis that will allow us to grow even more.”

Growth Drivers and Future Direction

TAA is moving towards an integrated operations portfolio with a balance of materials for the beverage can and automotive markets. Declining sales have been reported in the beverage can market, mainly believed to be due to the trend of switching from carbonated beverages to healthier beverages. On the other hand, the shift from bottles to bottle-cans is gaining momentum. To meet both beverage can and automotive-related demand, production line expansion is underway at the Logan Mill. When completed, UACJ plans to own a larger share of the annual production capacity. Market conditions will be closely monitored and Logan Mill production of automotive body sheet slated for Constellium-UACJ ABS will be increased as required.

To support growth initiatives in North America, one of the ways TAA is setting itself apart is by maintaining consistency and being very deliberate in its market position. Gordinier continues, “Tri-Arrows Aluminum respects the heritage of its business, which has delivered the earnings and capital returns that stakeholders have expected. So when we think about how important transitioning to produce materials for the automotive industry is to us and the UCAJ Group, it’s vital to keep in mind we are structuring a strategy that takes advantage of an emerging new market.” The consistency of TAA’s message in the marketplace is highly valued by its customers. The company is focused on being able to maintain the 20 percent share presently held in the can stock market, while also seeking to expand its share of the automotive body sheet market.

Demand for Automotive Body Sheet
Demand for Automotive Body Sheet

“Over 80 percent of Logan’s resources come from recycled aluminum, which minimizes negative environmental impact.”

Ken Purdue Plant Manager Logan Aluminum Inc.

“I think of Logan as providing green manufacturing jobs because we use so much recycled content. Aluminum, itself, is infinitely recyclable, and nearly all of our internal process scrap is recycled. UACJ also sources scrap from outside markets for use in our operations. We are very good stewards of the environment, and employees are involved in numerous activities in the community and surrounding area. As an example, the plant has been very active in supporting the United Way.”