FORT WAYNE, INDIANA, February 24, 2003—Steel Dynamics, Inc. (NASDAQ: STLD)
has announced that it is making plans to restart its Iron Dynamics
operation in Butler, Indiana, in the second half of 2003. After a
thorough evaluation of the production trials that were completed in
November and December of 2002, the company has concluded that improved
production technology, coupled with the ability to recycle waste
materials, makes it feasible and desirable for the facility to be
restarted to produce liquid pig iron.
SDI expects the operation will be able to produce liquid pig iron in
sufficient quantities and at a cost to be competitive with purchased pig
iron. With the recent escalation of raw materials costs, particularly
pig iron, the Iron Dynamics operation is expected to provide a
cost-effective alternative to purchased pig iron. In addition, the use
of liquid pig iron provides cost and operational benefits to SDI’s
steel-making operations.
“We were very pleased with the success of the Iron Dynamics’
production trials late last year using briquetting technology,” said
Keith Busse, Steel Dynamics’ President and CEO. “We believe the facility
can be operated on a profitable basis. After a successful restart later
this year, it should turn cash-positive in 2004.”
The company’s Board of Directors recently approved an additional
capital investment of approximately $14 million to complete the
installation of three additional briquetting machines in the facility.
With the addition of this equipment, Iron Dynamics will be able to
stockpile iron briquettes after reduction in the rotary hearth furnace,
or introduce the hot briquettes directly into the submerged arc furnace.
After the briquettes are liquefied in this furnace, the hot liquid pig
iron will be transferred in ladles to the flat-roll mill’s melt shop and
combined with scrap steel in the mill’s electric-arc furnaces.
Iron Dynamics, Inc. is a wholly-owned subsidiary of Steel Dynamics, Inc.
Forward Looking Statements:
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