TMS International Restructures for a New Industrial Era

PITTSBURGH, PA – March 02, 2026 – In a decisive move to adapt to a rapidly evolving global market, TMS International Corporation today announced a major strategic realignment. The nearly century-old provider of outsourced environmental and industrial services is restructuring its operations into three distinct business segments: the Performance Materials Group (PMG), the Industrial Mill Services Group (IMSG), and the Specialty Services Group (SSG).

Company leadership asserts the move is designed to foster agility, drive sales growth, and deliver enhanced value to its customers and stakeholders across the metals, mining, chemical, and energy sectors. The restructuring marks a pivotal moment for the company, which has been a fixture in industrial services since 1926.

"This realignment is grounded in a robust assessment of customer needs and market dynamics," said Joel Hawthorne, President and CEO of TMS International. "A change in business behavior, new competition, evolving industry trends and economic factors necessitated realigning our operations and strategies to remain relevant and competitive in today's ever-changing market."

Responding to a Shifting Industrial Landscape

The decision to reorganize is a direct response to pressures transforming the industrial services sector. Hawthorne’s mention of “new competition” and “evolving industry trends” points to a dynamic environment where established players can no longer rely on legacy structures. The landscape includes formidable competitors such as Harsco Environmental (recently rebranded as Enviri and in the process of being sold to a private equity firm) and Clean Harbors, both of which are aggressively carving out market share through specialization and strategic acquisitions.

This competitive pressure, combined with a relentless push for greater operational efficiency within client industries like steel manufacturing, has created an imperative for change. The realignment allows TMS to create more focused, nimble units capable of responding faster to specific market demands. By segmenting its broad portfolio, the company aims to deepen its expertise within each vertical and defend its market position.

"Our strategy is to create an organization structure that is more agile, efficient and strategically aligned to successfully navigate the complexities of the business environment and achieve our long-term goals," Hawthorne explained. He emphasized the goal of building a company that is not only innovative but also “commercially viable for the long term” through operational excellence and disciplined growth.

A Structure for Specialized Growth

The new three-segment structure is designed to provide clarity and focus, aligning services with distinct market needs and growth opportunities.

The Industrial Mill Services Group (IMSG) will form the bedrock of the company’s traditional on-site services for the metals industry. This group consolidates scrap management, metal recovery from slag, and surface conditioning services. By keeping these core, highly-integrated functions together, TMS reinforces its role as an indispensable partner within steel mills, where its operations create significant barriers to entry for competitors.

The Performance Materials Group (PMG) is positioned to capitalize on the increasing complexity of global supply chains. This segment focuses on raw materials procurement and logistics, including the use of proprietary cost-optimization software. It also handles graphite electrodes, zinc metal, and other crucial inputs for the metals and mining industries. This group represents a move toward higher-value, data-driven services that help customers manage costs and material flows more effectively.

The Specialty Services Group (SSG) diversifies TMS’s reach beyond its core metals clientele. This unit will provide transportation, logistics, environmental recycling, and emergency response services to the chemical, oil and gas, titanium, and specialty metals industries. This expansion allows TMS to leverage its logistical and environmental expertise in adjacent markets with unique demands and growth profiles.

Doubling Down on Sustainability and Efficiency

Beyond a simple organizational shuffle, the realignment strategically positions TMS International to capitalize on the powerful, cross-industry trend toward sustainability and the circular economy. As clients face mounting pressure to reduce their carbon footprint and manage resources more responsibly, TMS is framing its services as a key part of the solution.

The IMSG’s work in processing slag—a co-product of steelmaking—into construction materials for beneficial reuse is a prime example of circular economy principles in action. Likewise, the group’s Extruded Product Services (EPS) technology, which recovers valuable metallics and carbon from steel mill waste, directly helps clients reduce both operating costs and carbon emissions.

The PMG’s focus on raw material optimization helps reduce waste at the front end of the production process, while the SSG’s environmental recycling services provide end-of-life solutions. This comprehensive approach, embedded across all three new segments, aligns the company’s commercial objectives with the growing demand for green industrial practices.

A Veteran Leadership Team at the Helm

Executing this ambitious transformation falls to a team of seasoned industry veterans. CEO Joel Hawthorne, who took the helm in March 2025, brings over 35 years of experience from leadership roles across the manufacturing and metals sectors. He has assembled a team with deep operational and market knowledge to lead the new segments.

Mark Whalen, a 25-year steel industry veteran with a Ph.D. in Mechanical Engineering, will lead the IMSG. His extensive background includes senior operational roles at major steel corporations. David Aronson, who has been in the scrap industry since 1989, will continue to lead the PMG, leveraging his deep expertise in raw material trading and logistics. Rich Santello is tapped to become President of the new Specialty Services Group, while Mike Costa, a 28-year company veteran, will provide centralized support as Executive Vice President of Global Marketing and Operations Support.

"Mark, David, Rich and Mike have decades of experience in the industry," Hawthorne stated. "They have a deep understanding of our customers and markets and are capable of delivering strong results. Their combined experience and drive will create value for customers and stakeholders, and will position TMS well for the future."

As a privately held company under The Pritzker Organization since 2013, TMS International has the latitude to pursue such a long-term strategic transformation without the pressures of quarterly public market scrutiny. The realignment is a clear signal that the company and its owners are investing in a more specialized, sustainable, and resilient model designed to secure its leadership position for decades to come.