Steel Dynamics will build a new 3-million ton capacity flat-roll steel mill in the Southwestern United States. The board of directors for the Fort Wayne, Ind.-based company authorized the move this week.
The new facility will produce the latest generation of advanced high-strength steels. It will include value-added finishing lines, including a galvanizing line with annual capacity of 450,000 tons. A paint line with capacity to coat 250,000 tons will also be included.
The product offering is expected to include various flat-roll products, including hot-roll, cold-roll, galvanized, Galvalume and painted steel. It will serve the energy, automotive, construction and appliance sectors.
"We believe our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity, and to deliver strong long-term value creation," said Mark. D. Millett, president and CEO. "We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities.”
The project is expected to cost between $1.7 and $1.8 billion. The company is looking for sites in the Southwest to serve both the Southeastern U.S. and Mexico.
Determination of the final site location is subject to state and local government infrastructure and incentive support. Upon final site selection and the receipt of required environmental and operating permits, the company would expect to begin construction in 2020, followed by the commencement of operations in the second half of 2021.
“We are excited to announce this investment, which is a culmination of our intentional focus to cost effectively further serve the customers in this growing flat-roll steel consuming region, while increasing our steelmaking capacity and value-added product capability. As a site location is finalized and equipment negotiations are completed, we look forward to updating you on this important strategic initiative,” Millett said.