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Steel Company Cuts Energy Costs by More Than 37%

Company Profile

  • Steel Manufacturing
  • Facilities: 5
  • Load: 18 MW annually

Corporate Goals

  • Increased margins to retain leadership position and market share
  • Budget certainty for foreseeable future
  • Understand potential impact to operations based on new energy rules

The Challenges

This steel manufacturing company faced a significant challenge in keeping their profit margins higher than other organizations in the hyper-competitive Mexico market. They also did not fully understand the supplier options in the market, or the intricacies of these decisions, such as the volatility of natural gas in the US and how that influenced their costs. They needed expert advice.

The Approach

As a family-owned company, the manufacturer preferred a close relationship with any vendor they chose and has always maintained a small circle of trusted advisors. As they began to explore supplier options in the market, a knowledgeable and trusted energy advisor informed them that Acclaim Energy had both a local presence, an impressive record of achieving cost savings for its clients, and a 97% client retention rate. The company realized this was exactly what they wanted.

The Acclaim Advantage

Acclaim Energy valued the company’s approach and worked directly with the decision makers. They apprised the company of the sensitivities in the natural gas market and its supplier contracts. They also surveyed which market options could lead to energy cost savings. Acclaim created custom tools to develop a risk-mitigation strategy. They also discovered hidden fees within the company’s existing contract, which the company had never realized they were paying.

Acclaim issued an RFP, which resulted in more than 10 offers. They originally advised that the company stay with CFE during the time the tariff dropped. In the interim, Acclaim remained vigilant in analyzing market options, and they were ready to negotiate with the leading few. As a result, Acclaim was able to obtain a valuable, energy saving, five-year contract with the leading generator.

Program Results

  • Lasting savings: The contract Acclaim negotiated on behalf of the steel manufacturer created more than 37% in savings over the five-year term.
  • Higher margins: The company is now more competitive than ever and can focus budget decisions on more non-energy items.
  • Continued satisfaction: The company appreciates the independent, unbiased and personalized approach that Acclaim offers, and plans to continue its relationship with Acclaim for years to come.
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