Question-and-Answer Session
Operator
(Operator Instructions) Our first question comes from Mr. Richard Arch at Torino. Your line is open.
Richard Arch - Torino
A couple of questions -- number one, just looking at the steel business, it looks like there was a good improvement on costs there, which translated into higher margin per ton. Was that mainly operational efficiencies from the transformation plan or was there any mix or price differences which helped improve those?
John P. McConnell
It largely comes from the work of the last year-and-a-half in our transformational efforts and improving efficiencies. The rework of how we go about getting our jobs done here in the steel company reflects probably a 10% decrease in permanent employment needs going forward due to those efficiencies, so that was a large part of it. Andy, do you have any other color or --
B. Andrew Rose
No, I think that covers it, John.
Richard Arch - Torino
Great, okay. And also in terms of demand, you mentioned a little bit about commercial construction remaining weak. Any other color on any of the other end markets beside the autos?
John P. McConnell
I think not beyond what we said already.
Richard Arch - Torino
Okay. And then finally I just wondered if you could talk a little bit about the SCI acquisition, which should be closing soon, and that should probably be reflected in the next quarter. How do those products compare to the existing product line? And also in relation to the Piper acquisition, maybe compare how those two will impact the business going forward?
John P. McConnell
George is going to largely answer this but again, as I just said, the good part for us these are new markets for us and new opportunities. As you know, someone who does an excellent job of looking for operating efficiencies and effectively penetrating markets.
George P. Stoe
I think the best thing to say about the SCI acquisition is it’s really a new product line for us, the fact that it is pressure cylinders that are carbon fiber wound, that are lightweight that are used for a variety of applications. Some of the things that would be in aerospace where they are used to hold oxygen in airplanes, also to propel emergency slides in airplanes. Another application is also breathing apparatus, lightweight breathing apparatus for firefighters so they are not carrying a heavy pack around with them. And on the Piper acquisition, that is primarily aluminum products and medical oxygen is one of the products that they are involved in. They also make paintball cylinders. And then there’s a whole series of other non-cylinder type products that they make at that facility, small extruded products that are used for a variety of things.
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