Hybar Secures Financing for New Arkansas Rebar Mill

The company has raised $700 million of debt and equity financing to build the mill, according to a press release sent to SMU. $470 million of that will be spent to construct the mill, and the remainder will be used for startup and operation expenses.

TPG Rise Climate and Global Principal Partners (GPP) led the equity portion of the financing. GPP is the investment entity used by Hybar’s senior management team, which includes CEO Dave Stickler and CFO Ari Levy.

Commenting on Hybar’s investor group, Levy said: “It says a lot about the Hybar project given that we have the same high-profile financial providers that have invested alongside Dave and me on prior projects, including the highly successful Big River Steel flat-rolled steel mill, which is located two miles away from the Hybar site.”

Stickler spoke with SMU last year about his history starting steel mills and the plans Hybar has for this rebar mill, as well as a second rebar mill whose groundbreaking is planned for 2024. You can read that interview here.

TPG partner Mike Stone said of the financing: “Our investment in Hybar not only reflects the trust we have in this talented management team but our thematic focus on sustainable materials broadly, and on green steel production specifically. The global steel industry accounts for 7-9% of global CO2 emissions today, which creates a massive opportunity for Hybar to drive decarbonization at scale.”

Hybar plans to use solar energy to power its mill because it will be directly connected to a solar facility.

“No other steel mill in North America is directly connected to a solar field that can supply 100% of its power needs,” the company stated.

To supplement the solar power, when needed, Hybar has secured a special rate power contract with Entergy Arkansas.

The SMS group is providing the technology for the mill, including the water treatment facility, while Primetals Technologies is supplying the substation.

With Hybar’s technology meant to allow for reduced energy needs and limited greenhouse gas emissions, “Hybar expects its greenhouse gas emissions to be the lowest among all North American steel producers, and likely the lowest in the world’s steel making community,” the release said.

Hybar said it has become the first steel company globally to be certified to issue Climate Bonds, which show compliance with GHG emissions targets set by the international Paris agreement.

“The Climate Bond certification aligns perfectly with Hybar’s plan to offer our customers competitively priced rebar that is also the greenest rebar in the market,” Stickler said.

Construction of the greenfield mill is expected to take 22 months to complete, with start-up planned for 2025. Hybar plans to be “the most labor efficient steel rebar producer in the world,” with 154 employees in total in both operations and management.