Steel Dynamics, Fort Wayne, Ind., announces plans to invest approximately $140 million to expand its offering of value-added flat-rolled steel products through the addition of a new galvanizing line at its plant in Columbus, Mississippi. After 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 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 and Chief Executive Officer. “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.”
The new galvanizing line will have an annual coating capability of 400,000 tons, producing gauges between 0.013 and 0.160 inches, and widths between 36 and 72 inches. Construction is planned 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,” continued Mr. Millett. “The added investments will continue to improve the process control needed for advanced high-strength steel grades used in the automotive industry.”
