Steel Dynamics is set to invest $1.7bn to $1.8bn for the construction of a three million tonnes per annum, electric-arc-furnace (EAF) flat roll steel mill in the US.
The facility will be able to produce the latest generation of advanced high strength steel products and will feature value-added finishing lines, including a galvanising line with an annual capacity of 450,000 tonnes, and a paint line with an annual coating capacity of 250,000 tonnes.
The products will include flat roll steel products, including hot roll, cold roll, galvanised, Galvalume and painted steel, primarily for the energy, automotive, construction and appliance sectors. It will feature latest technologies to produce the highest strength steels available.
The facility is expected to create 600 positions and several opportunities for indirect job growth from other support service providers.
Steel Dynamics expects to establish the facility in the south-western US, which will serve not only the southern US, but also the underserved Mexican flat roll steel market.
However, a decision on the site location will be subject to state and local government infrastructure and incentive support.
The company expects to begin construction in 2020 and commence operations in the second half of 2021.
Steel Dynamics president and CEO Mark Millett said: “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.
“We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities.
“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.”
The company said that similar to its existing EAF steel mills, the new facility will provide an energy-efficient, lower environmental impact steelmaking alternative, compared to typical global steelmaking technologies currently in use.
Image: Steel Dynamics to construct new flat roll steel mill in US. Photo: Courtesy of Karan Bhatia on Unsplash.