Spotlight On... CORROSION RESISTANT ALLOYS
of worrying about forecasts, the company employed a structure that compensates for whatever is happening in the market. While CRA cannot carry all product lines, it has in-house technical expertise that can make adjustments according to preferences.
Collaboration Over Competition
CRA is adamant about its commitment to work with and not against standard mill manufacturers, and its focus is on business that is disruptive or unappealing to these companies.“ We want to be a toll worker for other mill manufacturers. I think anytime people see an acquisition, they think you are coming for their business, and that is not our objective. I will continue to stress that our goal is not to change our business model,” said Patchell. The company aspires to continue fostering two types of relationships: customer related and partner related.“ When we consider equipment acquisitions, we ask ourselves first if that capability already exists. We aim to purchase equipment not many companies have and believe this philosophy is mutually beneficial. We do not want to disrupt what they do well, and do not want them to disrupt what we do well.”
The Connection Between Progress and Integration
CRA’ s Canton, Ohio, location currently operates as the company’ s manufacturing location, but the company is close to commissioning its new manufacturing headquarters in Brenham, Texas, just outside of Houston. The facility is situated on 173 acres, but the company has access to 535 contiguous acres they can access.“ We opted for a greenfield site that allows us the flexibility to incorporate environmentally friendly and adaptive initiatives. Many companies move their facilities into
rural areas and are immediately in conflict with the local community,” said Patchell.“ But Brenham has been very welcoming. They like how the facility looks, and they appreciate the ongoing communication. The community’ s strong values and sense of pride are abundantly clear.” Prior to choosing the Brenham site, CRA considered other locations, including numerous industrial parks. A major consideration was the geographic location of most of the team, and it was important for the company to honor rather than displace the existing team.
The Integration of SXP
CRA has outlined five phases that guide the company’ s continued progress. The commissioning of Brenham is Phase One, and it will significantly increase CRA’ s capacity by four to five times.“ The Schultz, or SXP, acquisition helps us secure strategic equipment for future phases and specifically provides the company with the ability to enter Phase Two,” explained Patchell.“ This is a big deal for us because we will have the three largest cold pilger mills in the Western Hemisphere. Strategically, we are trying to aggregate distinguishable capabilities. CRA has three key value propositions: quality, reliability, and speed. Quality and reliability are must haves, especially as high alloy manufacturers. Speed promotes our proficiencies on a Just in Time-type basis.”
Distinguishable Capabilities
CRA’ s large diameter offerings are proving beneficial. The company is receiving a significant increase in requests for large diameter products, and many of these requests involve greener initiatives like carbon capture, utilization and storage( CCUS). This capability positions the company to make some of the largest outer diameter( OD) high alloy, seamless materials that are currently on the market. The acquisition of SXP equipment allows the company to pursue multiple opportunities and industry segments at the same time. It also affords the ability to incorporate a backup plan in the event of an unexpected situation.“ Focusing on large diameter provides many benefits. A lot of mills cannot produce anything over 95 / 8 inches, but we will be able to provide just under 14 inches. Only select groups can participate in that kind of business. Most of the business we pursue is dependent on macro movements and our ability to act quickly. We are usually involved in most of the fast track, new projects, like carbon capture and storage.” Larger OD options allow customers to increase the scale of their projects. CRA has been able to supply customers with large diameter pipe in long lengths, which increases the safety benefits and economic advantages while reducing risks to their projects.
Commitment to Sustainability
Because the company’ s Just in Time model provides such dexterity, CRA has been able to engage multiple business segments and navigate changing markets.“ Oil and gas has always been prominent in the energy sector, and then a larger emphasis was placed on energy transition. Now we are noticing a balance between the two. And we are seeing greener initiatives that facilitate cleaner production of hydrocarbons. We are witnessing cross-industry collaboration and efficiency gains. We recently had a discussion with someone about a data processing center. We were not involved in these types of conversations five years ago, but different worlds are coming together.” Patchell believes the company has a social responsibility to manage its operations from a sustainability standpoint. Sustainability is entrenched in CRA’ s business model. The company utilizes recycled products at scale in its operations, which allows the company to document its greenhouse gas mitigation process versus traditional manufacturing processes.“ We are taking waste that is already in the ecosystem and converting it into a usable product.”
Just in Time for the Future
CRA does not typically create five-year plans. Instead, it creates a vision and steers towards growth, ready to be agile and navigate change. Patchell believes energy-related distribution will evolve compared to other market sectors and that alternative energy will continue its progression versus traditional oil and gas.“ At one point we were 99 or 100 % oil and gas, but I think at some point in the next five years, there will be a big difference in that distribution. We are already moving in that direction and have seen where our model can be of value in other industry segments. However, as we diversify into other areas, we will not take shortcuts. We have a 97 % quality and reliability rating, which means we have very few quality rejects. When we say we are going to deliver it, we deliver it. That is because we are committed to doing it right every time.” CRA will continue incorporating dexterity into its business plan, adding value to and identifying unique capabilities, and fortifying partnerships. With a mindset that embraces agility, the possibilities are limitless.
John Patchell, Founder, and Cole Patchell, President, at Brenham campus construction site.
The views and opinions expressed in this article are those of the profiled company and may not reflect the position of Stainless Steel World Americas.
Stainless Steel World Americas- April 2025 | www. ssw-americas. com 3
SSWAM april 2025. indd 3 23-04-2025 17:26