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Area Development - Site Selection, Facility Planning and Workforce Development

Steel Dynamics to Locate Electric-Arc-Furnace Flat Roll Steel Mill in Sinton, Texas

07/24/2019
Steel Dynamics, Inc. selected Sinton, Texas, as the site for the company's new state-of-the-art, electric-arc-furnace flat roll steel mill, approximately 30 miles Northwest of the Port of Corpus Christi, Texas.

The company is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability. According to company officials, Sinton 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, company officials said.

"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 & CEO. "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.

"We have been developing a flat roll steel business strategy for this region and Mexico for several years," said Millett, "and, the team is ready to execute. We have extensive experience and a proven track record for successfully constructing and operating EAF steel mills and downstream value-add finishing lines. Our planned new EAF flat roll steel mill will be the most technologically advanced facility existing today. Our team has selected a suite of technologies based on our proven history of success, that should allow us to achieve steel grades previously out of reach to thin-slab casting technology, while sustaining the low-energy and low-Carbon footprint that is at the core of our steelmaking operations.”

Based on casting capability of up to 84 inches wide and up to a 5.5-inch cast thickness, it will be the world's largest thin-slab facility, the company said. The steel mill will also have a unique rolling mill configuration, providing the capability to produce Advanced High Strength Steel grades, including some energy sector products not available in the U.S. today.

The mill will also have the capability to produce up to 52.5 ton coils, creating meaningful cost efficiencies for certain energy customers. These advances will further reduce the gap between existing EAF and integrated steel mill production capabilities. We have already placed orders for a majority of the equipment and filed for the required permitting.

"Our customers are eager for us to begin, as we have been discussing plans for several of them to co-locate onsite with us," continued Millett. "We believe a majority of the customer base will experience a significant freight savings compared to their current supply-chain configurations. We are also making meaningful headway regarding regional prime ferrous scrap sourcing. We continue to grow increasingly excited about the expansive opportunities and long-term value creation our Southwest U.S. and Mexico growth strategy provides us.”

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