Steel Mills
Steel Dynamics Finalizes Columbus Purchase
Written by Sandy Williams
September 16, 2014
Steel Dynamics Inc. announced today the completion of the acquisition of Severstal Columbus for a purchase price of $1.625 billion.
“I would like to enthusiastically welcome the Columbus employees, community, and customers into the Steel Dynamics family,” stated Mark D. Millett, Chief Executive Officer. “The successful completion of the Columbus acquisition is an important milestone for Steel Dynamics and represents a significant step in the continuation of our growth strategy. The expected cash and earnings per share accretion and increased scale make this transaction a noteworthy strategic opportunity for our shareholders and all of our employees.”
One of North Americas’ newest mini-mills, Columbus Severstal was completed in 2007 at a cost of $980 million. A $555 million expansion in 2011 doubled the plant’s size and increased annual hot roll production capacity to 3.4 million tons. It has an annual cold rolled steel production capacity of 1.9 million net tons and 1.1 million net tons capacity for galvanized and galvannealed sheet. The mill serves customers in the OCTG and automotive sectors. Acquisition of the mill expands Steel Dynamics annual steel shipping capacity by 40 percent to 11.0 million tons.
The Columbus facility, located in Mississippi, will improve SDI’s geographic market position in the South and enhance exposure to Mexican industrial manufacturers. The mill currently employs 645 non-union employees.
The one-million square foot facility is occupies 1400 acres and includes:
Electric Arc Furnaces (2)
Ladle Metallurgy Furnaces (2)
Vacuum tank Degassers (2)
Thin Slab Casters (2)
Hot Strip Mill
Coupled Pickle Line Tandem Cold Mill
Push-Pull Pickle Line
Hydrogen Annealing Shop
Temper Mill
Hot Dipped Galvanizing lines (2)
It is one of the few North American flat rolled mills able to produce 76 inch wide hot roll, 74 inch wide cold roll and 72 inch wide galvanized sheet.
Sandy Williams
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