Steel Dynamics, Inc. announced that its board of directors has authorized the company to construct a new state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill in the U.S. The facility is will likely have an annual production capacity of approximately 3.0 million tons with the capability to produce the latest generation of advanced high strength steel products.
The project will include value added finishing lines, including a galvanizing line with an annual capacity of 450,000 tons, and a paint line with an annual coating capacity of 250,000 tons. The product offering is anticipated to include various flat roll steel products, including hot roll, cold roll, galvanized, Galvalume® and painted steel, primarily serving the energy, automotive, construction, and appliance sectors. The current estimated investment is $1.7 billion to $1.8 billion, with anticipated direct job creation of approximately 600 well paying positions, and numerous opportunities for indirect job growth from other support service providers.
The company currently expects to locate the facility in the southwestern U.S., to cost effectively serve not only the southern U.S., but also the underserved Mexican flat roll steel market. Determination of the final site location is subject to state and local government infrastructure and incentive support. Upon final site selection and the receipt of required environmental and operating permits, the company will likely begin construction in 2020, followed by the commencement of operations in the second half of 2021.
“We believe our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity, and to deliver strong, long term value creation,” said Mark. D. Millett, president and chief executive officer. “We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities. As a site location is finalized and equipment negotiations are completed, we look forward to updating you on this important strategic initiative.”
Published in the January 2019 Edition
