Service Center News

SDI Acquires Stake in New Process Steel

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Steel Dynamics Inc.  has made one of its largest downstream pushes yet with the acquisition of 45 percent of the service center company New Process Steel. The Houston-based New Process Steel is a metals solutions and distribution supply-chain management company headquartered with a focus toward growing its value-added manufacturing applications.

"We have enjoyed a strong customer relationship with New Process since our founding," said Mark D. Millett, chairman and CEO of SDI. "This minority equity interest enables us to grow our exposure to value-added manufacturing opportunities, while continuing to serve our other long-standing flat-roll steel customer needs.

New Process Steel is a prominent North American metals products manufacturer and supply chain solutions provider with two locations in Mexico and four locations in the U.S., two of which are located at Steel Dynamics' Butler and Columbus Flat Roll Steel divisions.

New Process Steel was purchased in 1952 by Gene Fant, the father of Richard Fant,  New Process' current CEO, Richard Fant. Richard Fant has significantly grown, modernized, and diversified New Process during his over 25-year tenure as CEO.

He will independently operate New Process as the majority 55 percent equity holder, making all business decisions in the normal course of operations, including steel purchasing and customer supply decisions. New Process employs approximately 950 individuals and is currently Steel Dynamics' single largest flat-roll steel customer.

“New Process Steel has a reputation for high-quality standards and strong customer relationships. With Richard Fant and the current New Process leadership team at the helm, we believe there will be numerous opportunities for value-added manufacturing growth. Steel Dynamics' focus remains on providing the highest quality steel and service to all of our customers, while creating innovative supply-chain solutions,” Millett said.

"I am excited to further our long-time relationship with Mark and the excellent team at Steel Dynamics," stated Richard Fant, New Process Steel CEO. "I believe this is a great opportunity to accelerate our growth within our value-added metals solutions and supply-chain strategy.  The entire New Process team and I are thrilled with this strategic step."