Steel Mills
SDI to Invest $140 Million in New Columbus Galv Line
Written by Tim Triplett
June 26, 2018
(Updated 6/27/2018) Steel Dynamics, Inc. has announced plans to expand its offering of value-added flat roll steel products through the addition of a new galvanizing line in Columbus, Miss. The company plans to invest $140 million, adding a third galvanizing line at its Columbus Flat Roll Division.
The new galvanizing line will have an annual coating capability of 400,000 tons, producing gauges between 0.013 inches and 0.160 inches, and widths between 36 inches and 72 inches. Construction is planned to take place during the next 24 months, with operations expected to begin mid-year 2020.
After the planned completion of this new facility, the company will have nine value-added galvanizing lines located throughout the eastern half of the United States, with a total annual coating capacity of approximately 3.8 million tons.
“In recent years, Columbus has transformed its product offerings through the addition of painting and Galvalume® coating capability, as well as through the introduction of more complex grades of flat roll steel, some of which serve the automotive sector,” said CEO Mark D. Millett. “These value-added improvements have reduced the amount of volume available to our existing galvanized customer base. The addition of a third galvanizing facility will allow Columbus to serve these existing customers, as well as new customers in the region, and will also further reduce its exposure to the more cyclical hot roll market.”
SDI also plans to invest between $90 million and $100 million during the next 24 months to upgrade certain process lines and hot strip mill capability at Columbus. The upgrades will increase process efficiency and allow for a wider range complex grade, higher-margin production capability, including advanced high strength steel grades used in the automotive industry.
Upon the closing of the recently announced Heartland acquisition, SDI will have 10 galvanizing lines with approximately 4.2 million tons of coating capacity, solidifying the company’s claim as the largest provider of non-automotive galvanized flat roll steel in the United States.
Tim Triplett
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