Steel Mills
SDI Acquires 45% Minority Interest in New Process Steel
Written by Tim Triplett
October 15, 2021
Steel Dynamics Inc. (SDI) has agreed to acquire a minority equity interest in New Process Steel – its largest flat roll customer – growing the steelmaker’s holdings in manufacturing and distribution. Terms of the transaction were not disclosed.
“We have enjoyed a strong customer relationship with New Process since our founding,” SDI Chairman and CEO Mark Millett said. “This minority equity interest enables us to grow our exposure to value-added manufacturing opportunities, while continuing to serve our other long-standing flat roll steel customer needs.”
New Process Steel was purchased in 1952 by Gene Fant, the father of New Process’ current CEO Richard Fant. Richard Fant has significantly grown, modernized and diversified New Process during his over 25-year tenure as CEO. He will independently operate New Process as the majority 55% equity holder, making all business decisions in the normal course of operations, including steel purchasing and customer supply decisions, SDI said.
“New Process Steel has a reputation for high-quality standards and strong customer relationships. With Richard Fant and the current New Process leadership team at the helm, we believe there will be numerous opportunities for value-added manufacturing growth,” Millett said.
Headquartered in Houston, New Process Steel is a prominent North American metals products manufacturer and supply chain solutions provider. It operates two manufacturing locations in Mexico and four manufacturing locations in the U.S., two of which are located at SDI’s Butler (Ind.) and Columbus (Miss.) Flat Roll Steel divisions. It employs 950 people.
“I am excited to further our long-time relationship with Mark and the excellent team at Steel Dynamics,” said Fant. “I believe this is a great opportunity to accelerate our growth within our value-added metals solutions and supply-chain strategy. The entire New Process team and I are thrilled with this strategic step.”
SDI, based in Fort Wayne, Ind., is one of the largest domestic steel producers and metals recyclers in the United States with facilities located throughout the U.S. and in Mexico.
By Tim Triplett, Tim@SteelMarketUpdate.com
Tim Triplett
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