Steel Dynamics Inc. provided an update April 13 on its flat roll steel growth in Texas and the Midwest.
“We are incredibly excited about the progress being made at our Sinton, Texas, EAF Flat Roll Steel Mill,” stated Mark D. Millett of Auburn, president and chief executive officer of SDI. “Given the success of our Sinton construction team, we are planning to add two additional value-added, flat roll coating lines more quickly than originally planned. The site is yet to be determined, but it will be located in the Southern U.S. to provide Sinton with similar diversification and higher-margin product capabilities as our Butler and Columbus Flat Roll Steel divisions.
“We also plan to construct two more value-added flat roll coating lines to be located in the Midwest U.S. to support the growing demand for coated flat roll steel products and to further increase the diversification and cash generation capability of our Midwest flat roll steel operations,” Millett added.
The company plans to invest $225 million in two new, flat roll steel coating lines in the Southern U.S. to support its Sinton Steel Mill that is planned to begin production in late summer 2021.
The lines will be comprised of a 300,000-ton flat roll galvanizing line with Galvalume coating capability and a 240,000-ton paint line. Galvalume products represent the fastest growing flat roll steel market in the United States, primarily serving the metal building industry, SDI said. This market has historically sourced as much as 45 percent of their needs from imports, SDI added.
Site location selection and engineering specifications are underway. The company expects the new Southern U.S. coating lines to begin production in the second half of 2022.
The company also plans to invest between $175 million and $200 million in two new flat roll steel coating lines to be located in the Midwest to support its regional flat roll steel operations, providing them with more value-added product diversification. The lines will be comprised of a 300,000-ton flat roll galvanizing line, also with Galvalume coating capability, and a 240,000-ton paint line.
Site location selection and engineering specifications are underway. The company expects the new Midwest coating lines also to begin production in the second half of 2022.