FORT WAYNE, INDIANA, July 29, 2002—Steel Dynamics, Inc. (NASDAQ: STLD)
today announced that it has entered into a definitive agreement with
Qualitech Steel SBQ LLC to purchase Qualitech’s special bar quality
mini-mill assets located in Pittsboro, Indiana. Steel Dynamics has
agreed to pay $45 million for the assets and currently plans to invest
between $60 and $70 million of additional capital to convert the
Qualitech facility to the production of between 500,000 and 600,000 tons
annually of merchant and reinforcing bar products.
“We are pleased that the opportunity to re-look at this facility
recently materialized,” said Keith Busse, president and chief executive
officer. “We have wanted to establish a presence in the merchant shapes
business for some time now, and believe that this new facility will be
our platform from which to launch that new business.”
Steel Dynamics plans to close the transaction within 25 days, and
barring any unforeseen circumstances, anticipates that it will complete
construction and start-up of this facility within 12 months after the
closing of the transaction and begin to ship its first products during
the second half of 2003.
Steel Dynamics manufactures a variety of hot- and cold-rolled steel
products at its Butler, Indiana, flat-roll mini-mill and has recently
begun initial beam production at its new Columbia City, Indiana,
structural and rail facility.
For more information about Steel Dynamics, Inc., please visit www.steeldynamics.com.
Forward Looking Statements:
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