b'GE T TING TO KNOW THE CEOTommy Okada, CEO, Arkansas Steel AssociatesQ: Youve had an extensive career with Sumitomo. How did yourQ: As the CEO, what do youexperience prepare you to lead Arkansas Steel Associates? envision for the future ofA: My time spent overseas in Jakarta and Shanghai has shapedArkansas Steel Associates?my management style. Different cultures, languages, and deci- A: We are always working towards sion-making processes have taught me how to adapt and leadcontinuous improvement and effectively, even in unfamiliar territories. Ive brought these lessonsgrowth. Our experience in adapt-with me to the U.S., where they aid in planning company growth anding to the changing tie plate market has only strengthened our setting future visions.resolve. We remain committed to maintaining our market leader-Q: Arkansas Steel has held a large share of the North Americanship while constantly seeking new opportunities and challenges to tie plate market since the early 90s. How do you continue aovercome. successful business strategy?Q: How has Sumitomos involvement contributed toA: We are fortunate in our position of market leadership. However, inArkansas Steels adaptability and growth?2019, we experienced a significant market shift, resulting in a 20%A: Sumitomo, despite being known for its conservatism, rec-drop in market value. This happened as customers discovered ourognized the need for action to sustain Arkansas Steel and the plates lasted longer than expected and began reusing them insteadlivelihoods of its employees. Sumitomos integrated corporate of purchasing new ones. structure allowed Arkansas Steel to leverage expertise from Q: With the reduced demand for tie plates, how has Arkansasvarious departments within the company. This broader perspec-Steel adapted to maintain profits and growth?tive enabled Arkansas Steel to explore new opportunities beyond A: It was essential to diversify our product portfolio and find newtraditional steel production. revenue streams. We started producing billets, increasing our outputQ: How has your role evolved since you joined the company?from 10,000 tons to over 90,000 tons annually by challenging ourA: Initially, I was focused on corporate governance from Tokyo, but production capabilities and introducing new sizes and specifica- as the President and CEO, I am now hands-on in managing the tions. Weve managed to bounce back to our original profit level andday-to-day operations. My leadership style has adapted over time, even surpass it, thanks to this strategic shift.informed by my international experiences and the unique business environment of Arkansas Steel Associates. I am excited about what the future holds for us. During a downturn in tie plate demand, ASA in 2021 sought to im-prove melt shop utilization and developed new value chains for cast steel billets. Other steel suppliers, with more finished product rolling capacity than raw steel production, needed additional cast billets to reheat and roll to meet growing market demand for products like wire rod and concrete reinforcing bar. By providing cast billets, ASA boosted its melt shop utilization and helped reduce costs. By working closely with strategic partners to align their product specificationsparticularly billet sizeswith customer mill re-quirements, ASA overcame the challenges and created a new profit stream by adapting to the market. While tie-plates still accounted for the majority of profits, billet sales also contributed significantly. As ASA carved out a unique niche in the U.S. steel industry, the com-pany also exemplified the way the power of strategic partnerships, technological innovation, and a steadfast commitment to quality contribute to success. Sumitomo Corporation of Americas 7'