SDI Adding Coating Lines in South, Midwest
By Metal Center News Staff
on Apr 15, 2021
Steel Dynamics will construct two new coating lines in the Southern United States in conjunction with its new flat-rolled mill in Sinton, Texas. The lines had been planned by SDI, but the company is moving up the timetable on their construction.
The site has yet to be identified, though it will provide Sinton with similar diversification and higher-margin product capabilities as the company’s facilities in Butler, Ind., and Columbus, Miss.
Additionally, SDI will build two value-added flat-roll coating lines to be located in the Midwest to “support the gorwing demand for coated flat-roll steel products and to further increase the diversification and cash-generation capability of our Midwest flat-roll steel operations,” said Mark Millett, president and CEO of SDI.
In the South, the company plans to invest $225 million in the two coating lines to support the mill in Sinton, which is expected to begin production in late summer. The lines will be comprised of a 300,000-ton flat roll galvanizing line with Galvalume coating capability and a 240,000-ton paint line. Galvalume products represent the fastest growing flat roll steel market in the United States, primarily serving the metal building industry, SDI executives claim.
The company currently expects the new Southern U.S. coating lines to begin production in the second half of 2022.
In the Midwest, the company also plans to invest between $175 million and $200 million in two new flat-roll steel coating lines. As with the plan in the South, the lines will be comprised of a 300,000-ton flat roll galvanizing line also with Galvalume coating capability and a 240,000-ton paint line. These lines will also benefit from the company's differentiated supply-chain. The company is also targeting the second half of 2022 for production to begin.