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SDI to Spend $140 Million on Third Columbus Galv Line

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Steel Dynamics Inc. will invest $140 million in its Columbus Flat Roll Division, adding a third galvanizing line at the Columbus, Miss., facility.

The investment will bring SDI’s total number of galvanizing lines in the Eastern U.S. to nine and increase its total annual coating capacity to approximately 3.8 million tons.

"This investment is another step of further diversification into higher-margin products for our Columbus Flat Roll Division," said Mark Millett, president and CEO, adding that the Columbus facility has transformed its product offerings in recent years through the addition of painting and Galvalume coating capability and with the introduction of more complex grades of flat-roll steel. “These value-added improvements have reduced the amount of volume available to our existing galvanized customer base. The addition of a third galvanizing facility will allow Columbus to serve these existing customers, as well as new customers in the region, and will also further reduce its exposure to the more cyclical hot-roll market."   

According to SDI, the new galvanizing line will have an annual coating capability of 400,000 tons, producing gauges between 0.013 inches and 0.160 inches, and widths between 36 inches and 72 inches. Construction is planned to take place during the next 24 months, with operations expected to begin mid-year 2020.  

In addition to this investment, Millett said SDI plans to invest between $90 million and $100 million to upgrade various process lines and hot-strip mill capability.

The added investments will continue to improve the process control needed for advanced high-strength steel grades used in the automotive industry," Millett said. "Since our acquisition of Columbus in late 2014, the team has done a tremendous job transforming the through-cycle earnings capability of this facility.  This wave of investment is the next step in our vision."