Friedman Industries, Incorporated operates as a manufacturer and processor of steel products.
Segments
The company operates in two reportable segments: flat-roll products and tubular products.
Flat-Roll Products
The flat-roll product segment consists of the operation of five hot-rolled coil processing facilities located in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois, and Sinton, Texas. The facilities in Granite City and East Chicago were acquired on Apr...
Friedman Industries, Incorporated operates as a manufacturer and processor of steel products.
Segments
The company operates in two reportable segments: flat-roll products and tubular products.
Flat-Roll Products
The flat-roll product segment consists of the operation of five hot-rolled coil processing facilities located in Hickman, Arkansas; Decatur, Alabama; East Chicago, Indiana; Granite City, Illinois, and Sinton, Texas. The facilities in Granite City and East Chicago were acquired on April 30, 2022, from Plateplus, Inc (‘Plateplus’). The facility in Sinton is a newly constructed facility that commenced operations during October 2022. The Hickman, Granite City, and East Chicago facilities operate temper mills and cut-to-length lines. The Decatur and Sinton facilities operate stretcher leveler cut-to-length lines. The equipment at all locations improves the flatness and surface quality of the coils and cuts the coils into sheets and plates of prescribed lengths. On a combined basis, the facilities are capable of cutting sheets and plates with thicknesses ranging from 16 gauge to 1’ thick, in widths ranging from 36’ wide to 96’ wide. The vast majority of the flat-roll product segment's revenue is generated from sales of company-owned inventory, but the segment also generates revenue from the processing or storage of customer-owned coils on a fee basis.
The company makes shipments of products based on which facility offers the desired product, or if the product is available at multiple facilities, based on other factors, such as customer location, freight conditions, and the ability of the facility to fulfill the order on a timely basis. Flat-roll products are sold on a wholesale, rapid-delivery basis, in competition with other processors of hot-rolled steel coils.
Tubular Products
The tubular product segment consists of the company’s Texas Tubular Products division (‘TTP’) located in Lone Star, Texas. TTP operates two electric resistance welded pipe mills with a combined outside diameter (‘OD’) size range of 2 3/8’ OD to 8 5/8’ OD. Both pipe mills are American Petroleum Institute (‘API’) licensed to manufacture line pipe and oil country pipe, and also manufacture pipe for structural purposes that meets other recognized industry standards. TTP has a pipe finishing facility capable of applying threads and couplings to oil country tubular goods, and performing other services that are customary in the pipe finishing process. The pipe finishing facility is currently idled. All of the tubular segment's revenue is generated from sales of company-owned inventory.
Marketing
Flat-Roll Products
The company sells flat-roll products and processing or storage services to approximately 480 customers located primarily in the midwestern, southwestern, and southeastern regions of the United States. The company’s principal customers for these products and services are steel distributors and customers manufacturing steel products, such as steel buildings, railroad cars, barges, tanks, containers, trailers, component parts, and other fabricated steel products. In the year ended March 31, 2024 (fiscal year 2024), sales of flat-roll products to O'Neal Steel accounted for approximately 16% of the company's total sales. The company sells all of its flat-roll products through its own sales force.
Tubular Products
The company sells its tubular products nationally to approximately 92 customers. The company’s principal customers for these products are steel and pipe distributors. The company sells all of its tubular products through its own sales force.
History
Friedman Industries, Incorporated, a Texas corporation, was founded in 1965. The company was incorporated in 1965.