SDI Ventures into Copper Market
Steel Dynamics Inc., Fort Wayne, Ind., and Barcelona, Spain-based LaFarga Group have formed a partnership to construct a $39 million U.S. facility to produce wire rod from recycled copper. Operating under the SDI LaFarga LLC name, the partners currently are seeking potential sites for the new mill in Allen County, Ind.
"We are proud to incorporate the advanced manufacturing technology of LaFarga Group in a state-of-the-art facility that deepens our commitment to Northeast Indiana and Allen County," says Mark Millett, president and chief operating officer of Steel Dynamics.
The venture will utilize various grades of recycled copper scrap as its primary raw material in the production of higher margin copper wire rod. As an intended provider of a portion of the copper scrap to the new venture through its OmniSource division, Steel Dynamics benefits from a new alternative domestic market for its recycled copper. Historically, OmniSource has exported much of its copper scrap to China.
"This joint venture represents our first expansion into the United States, and we are proud to partner with Steel Dynamics, a proven leader in the metals industry,” says Oriol Guixa, CEO of LaFarga Group.
This is SDI’s first red metals production facility. The company is one of the country’s largest producers of carbon steel, while also serving as one of the nation’s largest recyclers through OmniSource.
This new venture is expected to create 35 new full-time management, administrative and production positions by 2013.