Stemcor is a British
steel
Steel is an alloy made up of iron with added carbon to improve its strength and fracture resistance compared to other forms of iron. Many other elements may be present or added. Stainless steels that are corrosion- and oxidation-resistant ty ...
trading and distribution company. The company acts as an
intermediary
An intermediary (or go-between) is a third party that offers intermediation services between two parties, which involves conveying messages between principals in a dispute, preventing direct contact and potential escalation of the issue. In law ...
between buyers and sellers of steel and raw materials. It provides additional services, including logistics, price risk management and inventory management.
It is one of the world's largest independent steel traders and operates in 45 countries. As of 2012, the company's turnover exceeded £5 billion. However, since then, the company has undergone a number of
restructuring
Restructuring is the corporate management term for the act of reorganizing the legal, ownership, operational, or other structures of a company for the purpose of making it more profitable, or better organized for its present needs. Other reasons ...
s after the company built up large debts and defaulted on an $850 million debt.
The largest shareholder of Stemcor is US distressed investment fund
Apollo Global Management
Apollo Global Management, Inc. is an American global private-equity firm. It provides investment management and invests in credit, private equity, and real assets. As of March 31, 2022, the company had $512 billion of assets under management, ...
.
History
Stemcor was founded in 1951 as the
London
London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
subsidiary
A subsidiary, subsidiary company or daughter company is a company owned or controlled by another company, which is called the parent company or holding company. Two or more subsidiaries that either belong to the same parent company or having a s ...
of German trading company
Coutinho, Caro & Co. The company was founded by Herbert Coutinho and German immigrant Hans Oppenheimer, each taking half a stake in the business.
Coutinho's stake was acquired by US construction group
McDermott International
McDermott International, Ltd is a global provider of engineering and construction solutions to the energy industry. Operating in over 54 countries, McDermott has more than 40,000 employees, as well as a diversified fleet of specialty marine co ...
, then J McDermott, in 1984. In 1987, the Oppenheimer family gained full control of the business after buying out its American co-owner.
On completion of the deal the company changed its name from Coutinho, Caro & Co to Stemcor, an abbreviation of Steel Marketing Corporation.
Ralph Oppenheimer, the son of the company's co-founder, served as Chairman of Executive Chairman of the company between 1982 and 2013.
Margaret Hodge
Dame Margaret Eve Hodge, Lady Hodge, (née Oppenheimer, formerly Watson; born 8 September 1944) is a British politician serving as the Member of Parliament (MP) for Barking since 1994. A member of the Labour Party, she previously served as ...
, Chair of the Parliamentary Public Accounts Committee, is sister of Ralph Oppenheimer and a shareholder of the company.
Oppenheimer drove expansion of the business through a series of
acquisitions
Mergers and acquisitions (M&A) are business transactions in which the ownership of companies, other business organizations, or their operating units are transferred to or consolidated with another company or business organization. As an aspect ...
, including Steel Service Center, Aryan Mining & Trading Corporation, Barclay and Mathieson, Brahmani River Pellets and Steel Plate & Sections.
Between 2000 and 2012, the company's turnover grew from £1 billion to £5.1 billion. The growth and acquisitions were fueled by debt.
Financial difficulties and re-structuring
In 2013, due to high levels of debt, the company defaulted on an $850 million loan. ''The FT'' said that falling steel prices has damaged the profitability of the business.
In 2014, Stemcor negotiated a restructuring deal on $1.3 billion of debt. The company agreed to repay $1.3 billion over two years by selling or closing a number of subsidiaries. As part of the deal, the Oppenheimers remained majority shareholders but lost control of the Board.
In 2015, a further restructuring of the business was announced, with debt holders agreeing to write off $1.5 billion. As part of the restructuring the debt holders had their
loans converted to equity, and Apollo became the largest shareholder of the business.
The deal also led to a splitting of the business into two parts. The company was split into its steel and distribution business, which continued as Stemcor, and Moorgate Industries, which would hold a "troubled" Indian ore asset.
Operations
The company is headquartered in
Saint Helier, Jersey
St Helier (; Jèrriais: ; french: Saint-Hélier) is one of the twelve parishes of Jersey, the largest of the Channel Islands in the English Channel. St Helier has a population of 35,822 – over one-third of the total population of Jersey – ...
.
It has operations in 45 countries, including in North America, South American, Europe, Africa, Asia and Australia.
Products and services
The company acts as an intermediary between steel suppliers and buyers. The company says that it offers customers 3,500 different grades of steel and raw materials.
As well as connecting suppliers and purchasers, the company also provides logistics, including handling, load and shipping; price risk management; stockholding, and special products for the oil, gas and automotive industries.
References
{{reflist
Steel companies of the United Kingdom
Companies based in the London Borough of Islington
British companies established in 1951
Holding companies established in 1951
Private companies limited by guarantee of the United Kingdom