Eastern Alloys, Inc.

Overview

From the early days in 1965 to the present, Eastern Alloys has developed and implemented a series of programs, or tools, to support the marketplace. The business was founded upon the notion that customer success would provide the energy and impetus to drive the company's growth. By any measure that business model has succeeded. Today, Eastern Alloys operates two discrete manufacturing and recycling facilities: the flagship plant in Maybrook, NY, and Eastern Alloys of Kentucky, LLC, in Henderson, KY. Dedicated in April 2000, the Kentucky plant is the newest, most technologically advanced zinc alloy complex ever constructed.

Today, businesses in all industries are faced with making hard decisions that will impact future performance, in some case survivability. Everything is in play, everything. Some part of the solution is simple, at least from a philosophical perspective. Different results are the reciprocal of different actions, or inputs. To continue the same practices only assures the same results. So then, success is about making choices.

For every manufacturer of zinc alloy die castings, large or small, zinc alloy is typically one of the largest, if not the single largest cost component when measured as a percent of cost of goods sold. So it follows that selecting a supplier is serious business, especially in today's environment. In addition to raw materials, a zinc alloy supplier must be able to deliver the necessary services, information, and support that contribute materially towards its customers' success. To just ship a truck filled with raw material and mail an invoice falls short of the mark. Suppliers of die castings are being pressed to find ways to remove or reduce cost. In this context suppliers must become strategic trading partners. Selecting a supplier of zinc alloy is at least as serious as choosing a bank, business consultant, die casting machine builder, or tool maker, perhaps more so.

For 37 years, Eastern Alloys has sought to develop innovative solutions to benefit the North American zinc die casting industry. Early programs include ZA Alloy development, including providing industry-wide access to ZA trademark rights. Other programs include what was originally known as the Australian Die Casting Technology Transfer program continuing today as Low Mass Technology. Eastern took the lead in market development supporting the IZA's Marketing Conference series for manufacturers of zinc die castings. Eastern was a founding member of Interzinc, a zinc-specific marketing consortium. Importantly, under the leadership of Richard J. Bauer, Eastern's founder and Chairman, the company rallied the Washington Conference for Zinc, not once but twice, to thwart an attempt to include zinc in Super Fund legislation.

More recently, Eastern Alloys has expanded its customer-centric improvement engineering program developing user-friendly PQ2 EA software. At the 21st NADCA Congress & Exposition the company introduced ZinCalc, a program designed to assist die casters improve 1st pass material efficiency. Plus, the improvement engineering group continues working closely with customers and end-users to improve in-plant performance and develop new applications for zinc alloys. Because the business of buying and selling zinc alloys is not without risk, Eastern has developed a formal Price Risk Management facility available to every customer. To that end Eastern was elected a member of the London Metal Exchange earlier in the year. Each business day the company is connected to the world's metals and financial centers via real-time satellite down link. Add to that the company's comprehensive Market Development, Strategic Market Planning, and Supply Chain Management programs, Eastern Alloys delivers expansive resources to drive customer growth.

Over the years Eastern Alloys has continually reconfigured its business to meet the challenges of future markets. In an industry characterized by old facilities and equipment, Eastern completed construction of the most technologically advanced green site zinc alloy manufacturing and recycling complex, April 2000, in Henderson, KY. Eastern Alloys of Kentucky, L.L.C., is a global benchmark operation.

Global Network

Although Eastern Alloys' business is conducted primarily within North America, the company supplies specialty products to the South American and Asian markets. Perhaps more importantly, the company supports various international technical and trade associations, and actively participates in strategic activities with the purpose to advance casting technology and business development. Noteworthy affiliations include the London Metal Exchange in which Eastern Alloys is the only North American consumer member. Eastern Alloys is a member of ILZRO and the IZA World Die Casting Committee. Richard H. Bauer, the company's President, is the United States representative to ILZSG, the International Lead Zinc Study Group. In addition, John Malmgreen, Vice President of Manufacturing, is the U.S. representative on two ISO technical committees that review Zinc status.

Maintaining a global perspective provides direct linkage to developments beneficial to the needs of our customers

ASTM - American Society for Testing & Materials
AGA - American Galvanizing Association
AFS - American Foundrymen's Society
AZA- American Zinc Association
CDCA - Canadian Die Casting Association
DDC - Diecasting Development Council
FEF - Foundry Education Foundation
ISRI - Institute of Scrap Recycling Industries
ILZRO - International Lead Zinc Research Organization
ILZSG - International Lead Zinc Study Group
IZA - International Zinc Association
IZAA - Independent Zinc Alloyers Association
Interzinc - Interzinc
LME - London Metal Exchange
NADCA - North American Die Casting Association
SAE - Society of Automotive Engineers

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