FORT WAYNE, Ind., Sept. 18, 2018 /PRNewswire/ -- Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced the completion of the
acquisition of substantially all of the assets of Kentucky Electric
Steel ("KES"), a wholly-owned subsidiary of Specialty Steel Works
Incorporated, for $5.0 million.
The acquired assets are located outside of Ashland, Kentucky, and are comprised of a
rolling mill with an annual capacity of 250,000 tons. The
operations were closed earlier this year by the prior owner, and
Steel Dynamics plans to reopen the rolling mill in November 2018. The facility will be
operated as part of Steel Dynamics' Steel of West Virginia ("SWVA") operations, which is
located within 20 miles of Ashland. The acquisition will
provide product diversification for SWVA through the addition of
flats and specialty alloy bars.
"KES has been a loyal customer of our SWVA and Roanoke Bar
divisions," stated Glenn Pushis,
Senior Vice President, Long Products Steel Group. "We believe
that the complementary product offerings will provide value to
our customers. We currently anticipate that roughly 100,000
to 150,000 tons of billets will be shipped each year from our long
products steel mills to be further processed at Ashland, providing additional value-added
capability and higher through-cycle utilization for our steel
mills."
About Steel Dynamics, Inc.
Steel Dynamics 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 facilities located throughout
the United States, and in
Mexico. Steel Dynamics produces steel products, including hot
roll, cold roll, and coated sheet steel, structural steel beams and
shapes, rail, engineered special-bar-quality steel, cold finished
steel, merchant bar products, specialty steel sections and steel
joists and deck. In addition, the company produces liquid pig
iron and processes and sells ferrous and nonferrous
scrap.
Forward-Looking Statements
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, which we
generally precede or accompany by such typical conditional words as
"anticipate," "intend," "believe," "estimate," "plan," "seek,"
"project" or "expect," or by the words "may," "will," or "should,"
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 non-residential and residential construction,
automotive, manufacturing, appliance, pipe and tube, and other
steel-consuming industries; (4) fluctuation in the cost of key
raw materials and supplies (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 Steel Dynamics' 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 under the
headings Special Note Regarding Forward-Looking Statements
and Risk Factors, 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: Investors: SEC Filings.
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SOURCE Steel Dynamics, Inc.