b'S T E E L : S T R E N G T H T H R O U G H I N T E G R I T Y A N D V I S I O NSupplying Austin-based Production LineIncreases SCOA-Tesla BusinessW hen a SCOA business group, or SCOAs business groups can contribute to a sustainable society as a key member of the EV supply chain, everyone wins. SCOA Steel & Non-FerrousMetals Group celebrated that contribution recently; on July 17, after months ofnegotiation, Sumitomo Canada Limited (SCL) successfully concluded a new $33 million The current orderagreement with current customer & EV vehicle manufacturer Tesla to become the steel for the Tesla-Fremont factory weighs in at 35,000 MTsupply partner for their new production plant in Austin, Texasthe city that will also of steel products per year, and the serve as the new Tesla headquarters as they relocate from Palo Alto, California. SCL new business in Texas lookscurrently provides steel to the Fremont, California Tesla factory, and this new development to ship an additional 33,000 MTper year for production ofnearly doubles the current steel shipment amount from Sumitomo to Tesla.the new Tesla Model Yshown below. This is a remarkably exciting opportunity because of its potential business growth and the collaboration among three different entities: SCL, SCOA andServilamina Summit Mexicana (SSM), said Daniel Suganuma, who manages this Tesla business from the SCOA Chicago Office, and applauds the coopera-tion among Sumitomo entities in North America. It realizes our Americas Integrated Operation strategy because in this integrated supply chain, SCL remains an account manager providing client services, with SSM responsible for the actual processing of steel until delivery and SCOA playing the role of project manager as well as overseeing overall strategy. This integratedmanufacturers, said SCOA Steel and Non-Ferrous operation leverages our strengths and capabilities inMetals Group General Manager Akihiko Shono. They managing these complex supply chains using our col- implemented totally new concepts for our steel busi-lective knowledge and experience. ness which opened our eyes to new possibilities. By SCL has supplied flat roll steel to Tesla for productionnot sticking to what could be seen as traditional busi-since 2017, through its Tier1 chassis production suppli- ness common sense, their ideas may seem unorthodox, er, according to Suganuma. The current order for thebut they have their ears open and they listen. Their Tesla-Fremont factory weighs in at 35,000 MT of steeldisruptive way of thinking will give us more opportu-products per year, and the new business in Texas looksnities now and future. to ship an additional 33,000 MT per year for pro- SCL-Toronto established the initial business with Tesla duction of the new Tesla Model Y.Suganuma creditsseveral years ago, noted Mike Nakawatase, Deputy SCL/SCOAs solid relationship with Tesla, reinforcedGeneral Manager and Vice President of SCOA Steel & by proven customer service and constant operationalNon-Ferrous Metals Group. Now working together efficiency all throughout their business.with SCOA-Chicago and SSM as a group, they are able The raw material in mother coils is sourced fromto utilize their inherit strengths to capture this new busi-several US mills and shipped to SSM. SCL is in chargeness opportunity with this leading EV manufacturer. of that procurement and SCOA Chicago sales serve asBecause the mass production of the Tesla Model Y a central point of contact for Tesla not only in Canada,vehicle will start near the end of this year, trial mate-but throughout the entire North America region. SSMrials were sourced and already delivered to the Tier1 processes the mother coils and delivers this material justsupplier. In January, the ramp-up of the mass produc-in time to the Tier1 chassis parts manufacturers involvedtion will start, using the material ordered and delivered in the supply chain. Both SCL and SSM are underon time.SCOA-Chicago leadership, working closely together all the time under Mr. Shono as our leader in this business. We see potential future business growth and further Business with Tesla opened up a new era for SCOAopportunities for collaborating with Tesla down the Steel, in ways that are different from traditional autoroad, Suganuma added. Sumitomo Corporation of Americas 7'