FORT WAYNE, Ind., May 21, 2015 /PRNewswire/ -- Steel Dynamics, Inc.
(NASDAQ/GS: STLD) today announced plans to expand its offering of
value-added flat roll steel products through the addition of
painting and Galvalume capabilities at its Columbus, Mississippi steel mill. The company
plans to invest approximately $100
million and create 40 new jobs in order to add production
capability of higher-margin pre-painted and Galvalume flat roll
steel.
"This investment is a strategic step toward further
diversification into higher-margin products for our Columbus Flat
Roll Division," said Mark D.
Millett, Chief Executive Officer. "The additional width
capability and vacuum degassing equipment at the Columbus steel mill, enables us to further
diversify our pre-painted product offerings by physical aspect and
geography. We already have two paint lines and the ability to
produce Galvalume steel in Indiana. However, the Columbus investment will allow us to produce
double-wide steel, and sell into the southeastern markets,
including Mexico. We plan to sell surface-critical,
appliance-grade steel, as well as construction related products,
including those used in heating and air conditioning units,
residential entry doors, and lighting fixtures."
The most significant portion of the expansion will be the
addition of a state-of-the-art continuous coil paint line with an
annual coating capacity of 250,000 tons. Operations are
expected to begin during the first quarter of 2017, based on an 18
month project timeline, which includes permitting
requirements. The Columbus paint line will utilize an improved
design similar to the company's existing two lines located in
Indiana.
"We have achieved significant success related to our existing
pre-painted flat roll steel business," stated Millett. "Our
customers recognize the quality of our products and the benefit of
our shorter order-cycle, relative to competitor supply
chains. We are the only domestic steel company to have a
contiguous paint line at a production location, offering painted
steels directly to the consumer. As a result of our supply
chain efficiency, customers benefit from reduced logistic,
administrative and inventory carrying
costs."
This growth project also includes the addition of equipment to
an existing Columbus galvanizing
line to enable production of Galvalume, or aluminum-zinc alloy
coated flat roll steel. The combination of aluminum and zinc
significantly enhances corrosion performance and solar
reflectivity, making it the material of choice for premium metal
roofing used in construction.
"Additionally, we are appreciative and impressed by the support
we received from the State and Local organizations of Mississippi," said Millett. "We are
extremely grateful to Governor Phil
Bryant for taking a personal interest in our
project. We also thank Mr. Joe
Roberts and the staff of the Mississippi Development
Authority, the Lowndes County
Board of Supervisors and Industrial Development Authority,
Appalachian Regional Commission, Mr. John
Davis and the LINK Board, Mr. Joe
Higgins and the staff of LINK, and the Tennessee Valley
Authority."
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel
producers and metals recyclers in the
United States based on estimated annual steelmaking and
metals recycling capability, with annual sales of $8.8 billion in 2014, over 7,700 employees, and
manufacturing facilities primarily located throughout the United States (including six steel mills,
eight steel coating facilities, two iron production facilities,
over 90 metals recycling locations and six steel fabrication
plants).
Forward-Looking Statement
This press release contains some predictive statements about
future events, including statements related to conditions in the
steel and metallic scrap markets, Steel Dynamics' revenues, costs
of purchased materials, future profitability and earnings, and the
operation of new or existing facilities. These statements are
intended to be made as "forward-looking," subject to many risks and
uncertainties, within the safe harbor protections of the Private
Securities Litigation Reform Act of 1995. These statements speak
only as of this date and are based upon information and
assumptions, which we consider reasonable as of this date,
concerning our businesses and the environments in which they
operate. Such predictive statements are not guarantees of future
performance, and we undertake no duty to update or revise any such
statements. Some factors that could cause such forward-looking
statements to turn out differently than anticipated include: (1)
the effects of uncertain economic conditions; (2) cyclical and
changing industrial demand; (3) changes in conditions in any of the
steel or scrap-consuming sectors of the economy which affect demand
for our products, including the strength of the nonresidential and
residential construction, automotive, appliance, pipe and tube, and
other steel-consuming industries; (4) fluctuations in the cost of
key raw materials (including steel scrap, iron units, and energy
costs) and our ability to pass-on any cost increases; (5) the
impact of domestic and foreign import price competition; (6)
unanticipated difficulties in integrating or starting up new or
acquired businesses; (7) risks and uncertainties involving product
and/or technology development; and (8) occurrences of unexpected
plant outages or equipment failures.
More specifically, we refer you to SDI's more detailed
explanation of these and other factors and risks that may cause
such predictive statements to turn out differently, as set forth in
our most recent Annual Report on Form 10-K, in our quarterly
reports on Form 10-Q or in other reports which we from time to
time file with the Securities and Exchange Commission. These are
available publicly on the SEC website, www.sec.gov, and on the
Steel Dynamics website, www.steeldynamics.com.
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SOURCE Steel Dynamics, Inc.