Steel Dynamics Expanding in Mississippi
(Image courtesy of Steel Dynamics) The company has flat roll steel operations in Indiana
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowFort Wayne-based Steel Dynamics Inc. (Nasdaq: STLD) is planning a $140 million investment in a Mississippi facility. The addition of a new galvanizing line at its Columbus Flat Roll Division will create 45 jobs. Chief Executive Officer Mark Millett says it will be the third operation of its kind in the company’s portfolio and will involve "higher-margin production" in Mississippi.
"In recent years, Columbus has transformed its product offerings through the addition of painting and Galvalume coating capability, as well as through the introduction of more complex grades of flat roll steel, some of which serve the automotive sector," he said. " These value-added improvements have reduced the amount of volume available to our existing galvanized customer base. The addition of a third galvanizing facility will allow Columbus to serve these existing customers, as well as new customers in the region, and will also further reduce its exposure to the more cyclical hot roll market."
The company acquired the Mississippi facility with its $1.6 billion acquisition of Severstal Columbus LLC in 2014. In 2015, SDI announced a $100 million expansion of the Mississippi operations. Earlier this year, it detailed further planned growth of its flat rolled steel business with the acquisition of Heartland Steel in Terre Haute, a deal which could be complete in the next few months. The new line is expected to launch in 2020.