Industry Leaders Respond to Market Conditions with Strategic Decisions

Strategic Insights -

The recent economic downturn has prompted several leading companies to adjust their operations in response to depressed market conditions. Cleveland-Cliffs Incorporated, the largest supplier of iron ore products in North America, has announced the closure of three of its managed mines due to decreased demand. Meanwhile, The Provident Financial Group has agreed to merge with O-H-S-L Financial Corporation, expanding its assets to over $8.5 billion. Additionally, The Cleveland-based Lubrizol Corporation has entered into a partnership with Syntroleum Corporation to develop clean fuels additives, and Rock of Ages Corporation has completed its acquisition of the Cambridge Monument Company, increasing its retail locations in Ohio to 28. R-P-M Incorporated has also completed its acquisition of D-A-P Products Incorporated and its Canadian counterpart for $290 million.

Key Takeaways:

  • Cleveland-Cliffs Incorporated will close the Empire Mine in Michigan and the Hibbing Taconite Mine in Minnesota for six weeks, while the Tilden Mine in Michigan will close for 10 weeks, due to depressed market conditions for iron ore pellets.
  • The company's Wabush Mine in eastern Canada is currently on a five-week shutdown.
  • The merger between Provident Financial Group and O-H-S-L Financial Corporation will bring Provident's assets to over $8.5 billion, creating a leading financial institution in North America.
  • The partnership between Lubrizol Corporation and Syntroleum Corporation aims to develop additives for low-emission, high-performance "designer fuels" being developed by Syntroleum for DaimlerChrysler.
  • Rock of Ages Corporation has completed its acquisition of the Cambridge Monument Company, increasing its retail locations in Ohio to 28.
  • R-P-M Incorporated has acquired D-A-P Products Incorporated and its Canadian counterpart for $290 million, expanding its operations in the specialty coatings market.

Statistics:

  • $8.5 billion: Estate value of Provident after merger with O-H-S-L Financial Corporation (Source: COMTEX)
  • 28: Number of retail locations in Ohio for Rock of Ages Corporation after acquisition of Cambridge Monument Company (Source: COMTEX)
  • $290 million: Acquisition price of D-A-P Products Incorporated and its Canadian counterpart for R-P-M Incorporated (Source: COMTEX)
  • 6 weeks: Closure period of Empire Mine in Michigan and Hibbing Taconite Mine in Minnesota (Source: COMTEX)
  • 10 weeks: Closure period of Tilden Mine in Michigan (Source: COMTEX)

Sources:

  • COMTEX (http://www.comtexnews.com)