New SDI flat-rolled mill in Texas to be an 'import killer,' Millett says

The goal of Steel Dynamics Inc’s (SDI) new $1.9-million electric-arc furnace (EAF) flat-rolled steel mill, to be located in Sinton, Texas, is not to add more pressure to flat-rolled steel capacity in the United States, the company’s top executive said.

Rather, it aims to challenge foreign products in both the Gulf and West Coast regions in addition to domestic integrated steel models, SDI president and chief executive officer Mark Millett said during the company’s second-quarter earnings call on Tuesday July 23. “[The new mill] is only bringing a combination of technologies and dimensional capabilities that [are]… largely unavailable in the US today... I would tell you that the mill isn’t just adding domestic capacity, it’s more of an import killer,” he said. Sinton, located approximately 30 miles northwest of the port of Corpus Christi, Texas, was selected as the site for the new EAF mill, the company said on Monday. Construction is expected to begin in early 2020 and will include an estimated 550,000-ton galvanizing line and a 250,000-ton paint line, Millett said. The company expects to gain “significant competitive advantages” due to the location of the mill, including its geographic proximity to the company’s targeted customer markets. While domestic...

Published

July 23, 2019

21:47 GMT

New York