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Steel Dynamics Expands Production at Columbus, Mississippi, Manufacturing Center

06/27/2018
One of the largest domestic steel producers and metals recyclers in the United States, Steel Dynamics Inc. plans to expand its value-added flat roll steel products through the addition of a new galvanizing line in Columbus, Mississippi.

The company plans to invest approximately $140 million and create 45 new jobs, adding a third galvanizing line at its Columbus Flat Roll Division. After the planned completion of this new facility, the company will have nine value-added galvanizing lines located throughout the eastern half of the United States, with a total annual coating capacity of approximately 3.8 million tons.

Upon the closing of the recently announced planned Heartland acquisition, the company will have ten flat roll steel galvanizing lines with approximately 4.2 million tons of coating capacity, solidifying Steel Dynamics as the largest provider of non-automotive galvanized flat roll steel in the United States.

"This investment is another step of further diversification into higher-margin products for our Columbus Flat Roll Division," said Mark D. Millett, President & CEO. "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. 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,” he added.

The new galvanizing line will have an annual coating capability of 400,000 tons, producing gauges between 0.013 inches and 0.160 inches, and widths between 36 inches and 72 inches. Construction is planned to take place during the next 24 months, with operations expected to begin mid-year 2020.

"In addition to typical capital reinvestment at Columbus, during the next 24 months we plan to invest between $90 million and $100 million to upgrade certain process lines and hot strip mill capability to increase through-cycle profit margin capability through further product diversification and increased process efficiency, and to increase the range of complex grade, higher-margin production capability. The added investments will continue to improve the process control needed for advanced high-strength steel grades used in the automotive industry," said Millett. "Since our acquisition of Columbus in late 2014, the team has done a tremendous job transforming the through-cycle earnings capability of this facility. This wave of investment is the next step in our vision."

"We are appreciative and impressed by the continued support we have received from the State and Local organizations of Mississippi," Millett added. "We are grateful to Governor Phil Bryant for taking a personal interest in our project. For their generous support, we also thank Executive Director Glenn McCullough and the staff of the Mississippi Development Authority (MDA), the Lowndes County Board of Supervisors and the Industrial Development Authority (LCIDA), the Appalachian Regional Commission (ARC) and the Tennessee Valley Authority (TVA)."

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