Market Segment
SDI to Invest in Four New Coating Lines
Written by Sandy Williams
April 15, 2021
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.
Sandy Williams
Read more from Sandy WilliamsLatest in Market Segment
Nucor targets ‘white hot’ data center boom
With infrastructure demand shifting toward digital capacity, Nucor Corp. is positioning itself as the go-to steel supplier for the data center boom.
Gerdau’s N. American earnings rise in Q3 due to fall in imports
Gerdau’s North American profits rose in the third quarter, boosted by a decline in imports due to Section 232 steel tariffs.
Ternium swings to Q3 loss, eyes 2026 recovery
Ternium closed the third quarter with steady shipments and improving margins. But trade policy uncertainty and subdued demand in Mexico weighed on the Latin American steelmaker’s results.
SMU Mill Order Index fell in September
SMU’s Mill Order Index declined in September after repeated gains from June through August. The shift came as service center shipping rates and inventories fell.
Algoma’s losses widen in Q3 as tariff troubles continue
Algoma Steel’s net loss more than quadrupled in the third quarter on trade woes and its EAF transition. Separately, the company announced a change in leadership, as CEO Michael Garcia will retire at the end of the year.