Steel Dynamics Inc. (SDI) appears poised to announce that its new aluminum flat-rolled mill will be located in Mississippi, according to state records and recent comments by the state’s governor.
Governor Tate Reeves said he would convene a special session of the state legislature on Wednesday, Nov. 2, to finalize “the largest economic development deal in Mississippi history.”
The deal, which Gov. Reeves said is valued at $2.5 billion, “includes a flat-rolled aluminum production facility, biocarbon production facilities, and certain other industrial facilities,” according to a press release from his office.
The project would also involve infrastructure improvements and is slated to be located in Mississippi’s “Golden Triangle” region, Gov. Reeves said. The Golden Triangle is the area formed by the cities of Starkville, West Point, and Columbus.
SDI already operates at electric-arc furnace (EAF) sheet mill in Columbus. Market participants have speculated that the new aluminum mill would be located at or near Columbus, where it could benefit from synergies with the steel mill.
The Fort Wayne, Ind.-based steelmaker has to date said only that the mill would be located in the Southeast but has not specified where. The company did not respond to a request for comment for this article.
That said, the price tag and the scope of the project detailed by Gov. Reeves broadly match the $2.2 billion investment in an aluminum rolling mill that SDI announced in July. The company also said in an earnings call last month that it would soon reveal the location of the new aluminum mill.
Also, SDI has filed paperwork with the Mississippi Secretary of State for the formation of “Aluminum Dynamics LLC.” Those filings were made on Oct. 26. Listed as an officer of the limited liability company is Richard Poinsatte, SDI’s treasurer. Poinsatte is also listed as one of the officers and directors of Steel Dynamics Columbus LLC.
Commercial production at the new aluminum mill is expected in 2025 following a startup in 2024. The facility is slated to have annual production capacity of 650,000 metric tons.
It is one of several multibillion-dollar projects announced by major US steelmakers in recent years.
Others include SDI’s EAF sheet mill in Sinton, Texas, and US Steel’s plans to double capacity at its Big River Steel works. They also include a new plate mill by Nucor Corp. in Kentucky and a new EAF sheet mill the Charlotte, N.C.-based steelmaker has slated for West Virginia.
SDI’s project in Mississippi is unique in that it represents the first major foray by a domestic steelmaker into aluminum production in decades.
By Michael Cowden, Michael@SteelMarketUpdate.com
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