Steel Dynamics, Inc. (NASDAQ/GS: STLD) [www.steeldynamics.com] continues to progress on its ongoing and new flat roll steel growth initiatives.
“We are incredibly excited about the progress being made at our Sinton Texas EAF Flat Roll Steel Mill,” stated Mark D. Millett, President and Chief Executive Officer. “Sinton represents transformational growth for Steel Dynamics and long-term value creation for our teams, communities, customers, and investors. 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 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.”
Millett went on to say, “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. Our unique operating culture, coupled with our considerable experience in successfully constructing and operating highly-profitable EAF steel mills and flat roll steel coating lines, positions us well to execute these strategic initiatives and continue to grow,” said Millett.
The company plans to invest $225 million in two new flat roll steel coating lines to be located in the Southern U.S. to support its Sinton Steel Mill that is beginning production. The lines will include 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. This market has historically sourced as much as 45 percent of its needs from foreign imports. Customers prefer the company’s differentiated supply-chain. This has resulted in the company’s existing lines consistently running at full capacity, through increased consumption and market share gain.
The company currently expects the new Southern U.S. coating lines to begin production in the second half of 2022.
In addition, 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 to serve customer needs and increase through-cycle cash generation.
Site location selection and engineering specifications are underway. The company currently expects the new Midwest coating lines to begin production in the second half of 2022.
Additionally, the company previously announced a goal to be carbon neutral by 2050 for its electric arc furnace steel mill operations. To achieve this goal, the company set interim emissions reduction and renewable energy milestones to be achieved by 2025 and 2030.
