Steel Dynamics Inc. plans to invest up to $1.8 billion building an electric-arc-furnace flat roll steel mill somewhere in the southwestern United States.

With an annual production capacity of $3 million tons, the project’s value added finishing lines will include a galvanizing line with an annual capacity of 450,000 tons and a paint line with annual coating capacity of 250,000 tons.

Flat roll products made there will include hot roll, cold roll, galvanized, Galvalume and painted steel, mostly for the appliance, automotive, construction, and energy sectors.

The project is expected to create 600 well-paid positions and its location will be chosen after the company receives state and local government information on the infrastructure and incentive support they would be willing to provide for it, according to a Nov. 26 statement.

“We believe our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity, and to deliver strong long-term value creation,” Mark Millett, president and CEO, said in the statement.

“We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities,” he said.

“We are excited to announce this investment, which is a culmination of our intentional focus to cost effectively further serve the customers in this growing flat roll steel consuming region, while increasing our steelmaking capacity and value-added product capability.”

SDI plans to begin construction on the mill in 2020 and start operating it during the second half of 2021.

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