FORT WAYNE, INDIANA, February 16, 2012 / PRNewswire / Steel Dynamics,
Inc. (NASDAQ/GS: STLD) today announced that its board of directors has
approved an expansion of its Engineered Bar Products Division located in
Pittsboro, Indiana. The expansion is intended to both increase the
steel mill’s capacity to produce special-bar-quality (SBQ) steel bars
and to expand the mill’s product offerings of high-quality
small-diameter SBQ bars.
The expansion is expected to increase the mill’s overall annual
production capacity from 625,000 tons to 950,000 tons, a 52 percent
increase. Subject to the anticipated receipt of necessary permits, which
the company expects to be forthcoming in short order, and the receipt
of state and local government support, the project is scheduled to be
completed in the second half of 2013 and to cost approximately $76
million. With this additional capacity, the company’s Engineered Bar
Products Division would be among the largest single-site SBQ production
facilities in North America. The expansion includes numerous
enhancements to the facility’s rolling mill for the production of
precision sized bars, as well as improvements in material handling and
staging. The company also plans to expand the mill’s bar finishing
capabilities for non-destructive testing of finished bars, potentially
doubling its inspection capacity.
The principal modification to the mill is the planned addition of a
second rolling line that will permit the concurrent production of
small-diameter precision and larger-diameter bars. The company believes
that the expansion can be accomplished with no disruption to existing
operations, as the new line is essentially separate from current
operations. Billets for the new rolling mill are expected to be supplied
by existing capacity at the Pittsboro melt shop as well as high quality
production from the company’s Structural and Rail Division.
“We are excited to announce this growth initiative,” said Mark D.
Millett, Chief Executive Officer “This investment will allow us to
further expand and diversify our value-added product portfolio in a
capital efficient manner. Our customers have encouraged us to expand our
product offerings as a means of further establishing the Pittsboro
facility as a “one stop shop” for all of their SBQ needs. Since start-up
in 2004, our Engineered Bar Product’s team has partnered with a variety
of customers to supply them with high-quality SBQ products. Our team
has achieved a reputation for on-time performance, flexibility in
scheduling, and consistent high quality. With this new investment, we
expect to be able to build on that reputation. We plan to continue to
offer these service and quality benefits, along with a broader product
portfolio to our existing customers, and we look forward to establishing
relationships with new customers.
The increased production capacity will be focused on small-diameter
precision SBQ bars (1-inch to 3-inch). These smaller diameter bars are
used in a variety of transportation, industrial, energy, and automotive
applications. With these products, the company expects to be able to
substantially increase its penetration of the markets for SBQ products
in the U.S.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel producers
and metals recyclers in the United States based on estimated annual
steelmaking and metals recycling capability, with annual sales of $8.0
billion in 2011, 6,500 employees, and manufacturing facilities primarily
located throughout the United States (five steel mills, six steel
processing facilities, two iron production facilities, over 70 metals
recycling locations and six steel fabrication plants).
Forward Looking Statements
Contact: Fred Warner, Investor Relations Manager / (260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.com |