Steel Mills
SDI Sinton Starts Up Hot End, Rolls First Coil
Written by Michael Cowden
January 6, 2022
Steel Dynamics Inc. (SDI) has started up the hot end of its $1.9 billion steel mill in Sinton, Texas, according to sources familiar with the matter.
The Fort Wayne, Ind.-based steelmaker has melted a limited number of heats and rolled a limited number of coils – standard practice for a new mill, they said.
SDI officials were present for the first coil over the holidays, and there were no hiccups. Full production is not expected until later in the first quarter, sources said.
Company executives have said in past public remarks that the hot end was expected to begin production by the end of 2021 following various delays stemming from logistical snarls, late deliveries and COVID-related labor shortages.
The Sinton mill is expected to have annual capacity of 3 million tons. But it is not expected to reach its full run rate until the middle of 2022. Shipments this year are expected to be approximately 2 million to 2.2 million tons.
SDI plans to target markets on the West Coast, in Mexico and to compete with imports with the new mill.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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