Steel Dynamics Chooses Texas For New Flat Roll Steel Mill

Sinton, TX will be the location of the company's previously announced $1.9 billion state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill.


https://businessfacilities.com/2019/07/steel-dynamics-chooses-texas-new-flat-roll-steel-mill/
Sinton, TX will be the location of the company's previously announced $1.9 billion state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill.
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Steel Dynamics Chooses Texas For New Flat Roll Steel Mill

Sinton, TX will be the location of the company's previously announced $1.9 billion state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill.

Steel Dynamics Chooses Texas For New Flat Roll Steel Mill

Steel Dynamics, Inc. has named Sinton, TX, as the site for the company’s previously announced new state-of-the-art, electric-arc-furnace (EAF) flat roll steel mill. Sinton, approximately 30 miles Northwest of the port of Corpus Christi, TX, is strategically located within the targeted Southwest U.S. and Mexico market regions, bringing numerous competitive customer and raw material advantages to the project. Final determination is still subject to the anticipated receipt of necessary permits and continued state and local government support, which the company expects to be forthcoming.

Steel Dynamics Sinton, Texas
(Image: Steel Dynamics, Inc.)

“We are extremely excited to announce our selection of Sinton as the site for our next-generation, new flat roll steel mill investment,” said Mark. D. Millett, President and Chief Executive Officer. “We are eager to join the Sinton community, and we appreciate the warm welcome and support that we have received from them, Governor Abbott and the State of Texas, as well as local leaders from San Patricio County, the City of Sinton, and the Sinton Independent School Board. We thank them for their trust, shared vision, and support for this important strategic investment. We anticipate the project will create approximately 600 well-paying positions, and abundant opportunities for indirect job growth from customers and other support service providers, bringing meaningful economic growth to the surrounding communities.

According to Millett, the planned new EAF flat roll steel mill will be the most technologically advanced facility existing today, allowing the company to achieve steel grades previously out of reach to thin-slab casting technology, while sustaining a low-energy, low-carbon footprint.

The Sinton location brings numerous advantages, including:

  • Proximity to the three targeted customer regions of the four-state Texas area, the Western U.S. and Mexico representing approximately 27 million tons of relevant flat roll steel consumption,
  • Customer-centric logistic benefits, providing shorter lead times and meaningful customer working capital savings,
  • Central to the largest domestic consumption of flat roll Galvalume® and construction painted products, with the anticipated ability to effectively compete with excessive regional imports,
  • Sufficient acreage to allow customers to locate on-site, providing logistic savings and steel mill volume base-loading opportunities,
  • Proximity to prime ferrous scrap generation via the four-state Texas region and Mexico, and cost-effective access to pig iron through the deep-water port of Corpus Christi, as well as other alternative iron units,
  • Excellent logistics provided by on-site access to two class I railroads, transloading opportunities with a third class I railroad, proximity to a major U.S. highway system, and access to the deep-water port of Corpus Christi, and
  • Existing, mature and dependable power, natural gas, and water sources.

This investment will benefit from Steel Dynamics’ focus on safety, its low-cost, highly variable operating framework and entrepreneurial performance-based incentive culture.  The planned facility is anticipated to have an annual production capacity of approximately 3.0 million tons with the capability to produce the latest generation of Advanced High Strength Steel grades. The project will include value-added finishing lines, including a galvanizing line with an annual capacity of 550,000 tons, and a paint line with an annual coating capacity of 250,000 tons. The product offering is anticipated to include various flat roll steel products, including hot roll, cold roll, galvanized, Galvalume® and painted steel, primarily serving the energy, automotive, construction, and appliance sectors. 

The current estimated required investment is approximately $1.9 billion, which does not include the benefit of anticipated state and local incentives. Upon the receipt of required environmental and operating permits, the company expects to begin construction early 2020, followed by the commencement of operations mid-2021.

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