U.S. steel producer recently announced plans to construct a state-of-the-art electric arc furnace (EAF) mill for flat roll steel in the U.S. southwest with an eye to serve the Mexican flat roll steel market.

Steel Dynamics, Inc. (SDI), based in Fort Wayne, Indiana, anticipates the facility 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 products. The project will include a galvanizing line with an annual capacity of 450,000 tons with a product offering serving the energy, automotive, and equipment manufacturing industries.

SDI currently expects to locate the facility in the southwestern United States in order to reach the underserved Mexican flat roll steel market as well as the southern and southwestern states. Determination of the final site location is subject to state and local government infrastructure and incentive support with an expectation of construction beginning in 2020, followed by the commencement of operations in the second half of 2021.

“We believe our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity and to deliver strong long-term value creation,” said Mark. D. Millett, President and Chief Executive Officer. “We plan to utilize new technologies that will further reduce the gap between existing EAF and integrated steel mill production capabilities.”

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