Metal Industry News

Hybar to Build Rebar Mill in Arkansas

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Hybar, a newly formed company, has raised $700 million of debt and equity financing to build, start up and operate a technologically advanced, environmentally sustainable scrap metal recycling steel rebar mill. Hybar plans to produce 630,000 tons of rebar annually.

Of the $700 million raised, $470 million will be spent to build the rebar mill. The remainder of the financing will be used to start up and operate the mill and pay certain debt service costs during construction.

The mill, which is expected to take 22 months to construct, is being built in Northeast Arkansas on a 1,300-acre greenfield site with direct access to barge, rail and truck transportation options. The mill will produce a full complement of high-yielding rebar that will primarily be used in large infrastructure projects, including projects supported by the Infrastructure Investment and Jobs Act and the Inflation Reduction Act.

Hybar’s mill technology, including the water treatment facility, is being supplied by SMS group. The substation is being supplied by Primetals Technologies. Hybar’s technology is designed to significantly reduce the amount of energy needed to produce rebar, especially when compared with other rebar mills in North America, many of which were built more than 30 years ago. Hybar’s technology will also greatly limit greenhouse gas emissions. Hybar expects its greenhouse gas emissions to be the lowest among all North American steel producers, and likely the lowest in the world’s steelmaking community.

Hybar’s ability to drastically reduce energy use while simultaneously limiting greenhouse gas emissions were key drivers leading to Hybar being the first steel company globally to be certified to issue Climate Bonds. Climate Bonds demonstrate compliance with the international Paris Agreement’s greenhouse gas emissions targets.

“The Climate Bond certification aligns perfectly with Hybar’s plan to offer our customers competitively priced rebar that is also the greenest rebar in the market,” said Dave Stickler, Hybar’s CEO. Stickler previously headed up nearby Big River Steel.

Stickler and his colleague, Ari Levy, Hybar’s CFO, have a long and successful track record of investing in, building and operating scrap metal recycling steel mills in North America and elsewhere in the world. When commenting on Hybar’s investor group, Levy said, “It says a lot about the Hybar project given that we have the same high-profile financial providers that have invested alongside Dave and me on prior projects.”