Steel Mills

SDI to Invest in Four New Coating Lines

Written by Sandy Williams

Steel Dynamics Inc. announced today a major investment to establish four new coating lines—two in the South and two in the Midwest.

The $225 million investment in the southern location will support the new Sinton, Texas, steel mill, which is on track for first production in late summer 2021. A 300,000-ton flat-roll galvanizing line with Galvalume coating capability is planned, as well as a 240,000-ton paint line. Galvalume products are used primarily in the metal building industry, which has sourced as much as 45% of its needs through imports, said SDI.

Additionally, $175 million and $200 million will be invested for two new flat-rolled steel coating lines that will be located in the Midwest to support SDI’s flat-rolled operations in the region. The lines include a 300,000-ton flat-roll galvanizing line, also with Galvalume coating capability, and a 240,000-ton paint line.

Sites are still to be determined in both the South and Midwest regions. SDI plans to have the facilities operational by the second half of 2022.

“We are incredibly excited about the progress being made at our Sinton, Texas, EAF Flat Roll Steel Mill,” stated Mark D. Millett, SDI President and CEO. “Sinton represents transformational growth for Steel Dynamics and long-term value creation for our teams, communities, customers, and investors. Given the success of our Sinton construction team, we are planning to add two additional value-added flat roll coating lines more quickly than originally planned. The site is yet to be determined but it will be located in the southern U.S., to provide Sinton with similar diversification and higher-margin product capabilities as our Butler and Columbus Flat Roll Steel divisions.

“We also plan to construct two more value-added flat roll coating lines to be located in the Midwest to support the growing demand for coated flat roll steel products and to further increase the diversification and cash generation capability of our Midwest flat roll steel operations. Our unique operating culture, coupled with our considerable experience in successfully constructing and operating highly-profitable EAF steel mills and flat roll steel coating lines, positions us well to execute these strategic initiatives and continue to grow,” said Millett. 


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