Steel Dynamics expands Structural and Rail Division

Written by Maggie Lancaster, assistant editor
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Steel Dynamics, Inc., is expanding its Structural and Rail Division located in Columbia City, Ind., by $75 million to "utilize excess melting and casting capability and further diversify its product portfolio and market sector exposure."

 

The company says the project provides for the annual production of 240,000 tons of reinforcing bar in various sizes with product sales including coiled, custom cut-to-length and smooth bars in sizes from #3 to #8 reinforcing bars. Steel Dynamics says the size offerings represent approximately 70 percent of 2016 total domestic reinforcing bar consumption. Upon completion, the company expects the expansion to add approximately 33 local jobs.

The project will include the addition of a rolling mill, along with other equipment and infrastructure requirements. Steel Dynamics expects the project to be completed during the fourth quarter 2018, but notes that the project is subject to the anticipated receipt of necessary permits, which the company expects to be forthcoming in short order, and the receipt of state and local government support.

“We are excited to announce this growth initiative,” said Mark D. Millett, president and CEO. “This investment will further expand our Structural and Rail Division’s product offerings and capability in a very capital efficient manner. Additionally, we will be the largest independent rebar supplier in the region, not competing with our new customer base, which we believe will be received positively. We believe our intended business model could provide meaningful time and yield-loss savings for the customer, while also providing working capital benefits. This project complements the recently announced addition of 200,000 tons of reinforcing bar capacity at our Roanoke Bar Division, which is expected to begin operating at the end of 2017.”

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