Steel Dynamics Planning Major Investment

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The purchase price includes $93 million in cash and the assumption of $41 million in debt. The purchase price includes $93 million in cash and the assumption of $41 million in debt.
FORT WAYNE -

Fort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) has announced plans to build a new organic flat roll steel mill in the U.S. The company says it will invest up to $1.8 billion in the facility and create approximately 600 jobs. A specific location has not yet been determined, however Steel Dynamics says the mill will likely be built in the southwestern United States and construction could begin in 2020.

The electric-arc-furnace facility is expected to have an annual production capacity of 3 million tons and will produce various flat roll steel products, including hot roll, cold roll, galvanized, and other types of steel. The mill will primarily serve the energy, automotive, construction and appliance sectors.

Mark Millet, chief executive officer of Steel Dynamics, says the investment is the culmination of the company's focus to further serve customers in a growing flat roll steel consuming region in a cost effective manner.

"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," Mark Millett, chief executive officer of Steel Dynamics, said in a news release. "We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities."

The company says regional location will cost effectively serve the southern U.S. and the underserved Mexican flat roll steel market. The final decision on a site location will be made based on state and local government infrastructure and incentive support.

Steel Dynamics says operations at the facility are expected to begin in the second half of 2021.

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