FORT WAYNE, INDIANA, February 4, 2003—Steel Dynamics, Inc. (NASDAQ: STLD)
has announced it has reached an agreement to purchase the
Jeffersonville, Indiana, assets of GalvPro II LLC. This steel coating
facility formerly operated by GalvPro is capable of producing between
300,000 and 350,000 tons per year of light-gauge, hot-dipped cold-rolled
galvanized steel. The southern Indiana facility will become a part of
Steel Dynamics’ Flat Roll Division, based in Butler, Indiana, which is
expected to supply the plant with steel coils for coating. Production at
Jeffersonville is expected to begin mid-2003. SDI is currently capable
of funding the purchase from available cash on hand.
“This asset purchase is attractive as it gives us the opportunity to
increase SDI’s galvanizing capacity at a reasonable cost,” said Keith
Busse, President and CEO of Steel Dynamics. “Buying the GalvPro plant is
consistent with our strategy of pursuing a richer mix of valued-added
products. With the increasing level of hot-band steel production at our
Butler mill and strong customer demand for our coated products, we are
out-running the capabilities of our current finishing lines. This
Jeffersonville facility, combined with a coil-coating project underway
at the Butler Cold Mill, will allow us to increase the company’s volume
of production of higher-margin downstream steel products.”
The addition of the new galvanizing facility would give SDI the
ability to increase its percentage of sales of various value-added
products, which were approximately 60 percent of total flat-roll
shipments during 2002. Additional modifications at the Butler Flat Roll
mill are under consideration to enhance throughput of value-added steel.
The Jeffersonville facility is located in the Clark Maritime Center,
near Louisville, Kentucky. Located on the Ohio River and comprised of
several steel-processing businesses, the Maritime Center is accessible
by rail, truck or barge. GalvPro commenced production there in December
1999, and idled the plant 15 months later due to financial
circumstances.
Forward Looking Statements:
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