I think all three parts of the galvanize supply chain benefit

I think all three parts of the galvanize supply chain benefit if this is adopted: manufacturer, service center and producer (mill).

The manufacturer is obviously getting lower priced material to begin with.  And all gauges, all uses, all parts produced can be of the same zinc weight (G30), so it reduces one aspect of inventory.  He can buy without any passivation, meaning less cost and fewer processes.  He can avoid messy oil that may be used to save die wear or to increase formability, saving clean up and cost.  And if he post paints, InterCoat®ChemGuard is a great adhesion foundation, so that just became easy.

The service center really gains simplicity and savings in number of sku’s.  Imagine buying, storing, managing and manipulating not only different material but varying galvanized product by coating weight, with no chrome chemtreat, or with oil or hexavalent chrome, or trivalent chrome.  It will be nice to have no passivations, one coating weight of zinc, and be able to offer a better product at a lower price to customers.  Easier loads to ship, less inventory to manage, more value to sell.

Even the producer (yes, the mill) is in line for great benefits.  Buying and storing enormous quantities of zinc ingots (even at leveraged or volume pricing) is expensive.  And selling a product (heavy zinc coating) that can be washed into waste streams is becoming increasingly environmentally challenged.  And the hexavalent chrome issue, (banned in Europe, under attack everywhere, and clearly dangerous and toxic) will be resolved.  Savings accrue from avoiding multiple application set ups, multiple coating weights, multiple passes through line coaters, and from the losses associated with trying to apply heavy weight zinc with consistency and evenness.  Less zinc equals less grief, less dependency and more net value—even with the loss of zinc premiums for the heavier weights.  Besides, as other mills regularly apply InterCoat®ChemGuard for their customers, there will be the need to stay competitive.

I think it is a win for everyone.