FORT WAYNE, INDIANA — May 20, 1999 — Steel Dynamics, Inc.
(NASDAQ: STLD) announced today that, subject to appropriate further
investigation, its Board of Directors has authorized an additional
capital expenditure of approximately $ 40 million for the modification
of SDI’s new structural mill in Whitley County, Indiana, for the purpose
of adding the manufacture of standard and premium quality rail to its
proposed product array. Preliminary engineering work and technology
assessment is expected to commence immediately.
The Company anticipates that the addition of a rail manufacturing
capability could add between 250,000 and 500,000 tons of standard and
premium rails to its complement of approximately 900,000 tons of beams,
angles, channels, h-piling, and other products expected to be produced
in the Whitley County facility. The plant’s original production
capability of 1 million tons annually is expected to be only moderately
increased as a result of this proposed product addition.
SDI plans to add various handling and head hardening equipment in the
finishing area of the rolling mill, and discussions have been initiated
with providers of the various equipment and applicable technologies.
Preliminary work is currently being performed at the Whitley County
building site. The Company anticipates that its air permit will be
issued in June, that the plant construction will commence shortly
thereafter, and that the new plant will begin producing steel in the
second half of year 2000.
Because the announcement of this project addition necessarily
involves forward-looking statements, reference is made to SDI’s
discussion of forward-looking statements at Item 1 of its Form 10-K
Annual Report. |