Steel Mills
SDI to Buy Kentucky Electric Steel
Written by Sandy Williams
July 26, 2018
Steel Dynamics Inc. confirmed in its second-quarter earnings call that it is in the process of acquiring the idled Kentucky Electric Steel Mill in Ashland, Ky.
“I would put it in the classification of a planned acquisition right now,” said CEO Mark Millett. “We haven’t closed on it, although it’s looking favorable.”
Kentucky Electric, maker of special bar quality steel bar flats, ceased operations in January 2018, laying off 113 workers. In June, American Metal Market reported that SDI was interested in acquiring the plant and restarting the rolling mill later this year.
Millet said on Tuesday, “Our intent is not currently to start up the hot side, just to better utilize our Steel West Virginia and our Roanoke billet capacity.”
Kentucky Electric Steel will add 200,000 tons of rolling capability for Steel Dynamics, said Millett, which will “give us some solid diversification.” He added that KES will improve the through-cycle utilization and earnings profile for Steel West Virginia and Roanoke.
The KES facilities include an electric arc furnace with a melting capacity of 400,000 tons. When operational, the mill produced special bar quality (SBQ) and merchant bar quality (MBQ) flat products for the OEM and merchant markets.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Nucor to Partner with Fusion Company to Power US Mill
Nucor has announced a collaboration with fusion power company Helion to develop a 500-megawatt nuclear fusion power plant.
USW Taps McCall as New President After Conway’s Passing
The United Steelworkers International (USW) executive board on Tuesday appointed David McCall as the union’s new international president. He will fill the remainder of Tom Conway’s term.
USW International President Tom Conway Dies at 71
Tom Conway, international president of the United Steelworkers (USW) union since 2019, has died at age 71.
Stelco Considering Bid for U.S. Steel: Bloomberg
Canadian steelmaker Stelco Holdings Inc. is now in the mix to purchase U.S. Steel, according to an article in Bloomberg on Thursday, which cited people familiar with the matter.
USS Expects Lower Q3 Earnings, Says UAW Strike Partly To Blame
U.S. Steel expects earnings to drop in the third quarter vs. the prior quarter and the same period a year earlier as the company adjusts production because of the United Auto Workers (UAW) union strike.