Steel Mills
SDI to Acquire CSN Heartland in Indiana
Written by Sandy Williams
May 15, 2018
Steel Dynamics has announced it will acquire CSN Heartland from CSN Steel, a wholly-owned subsidiary of Companhia Siderurgica Nacional, for $400 million, subject to regulatory approval. SDI expects to close the transaction by the end of third-quarter 2018.
Heartland, located in Terre Haute, Ind., produces hot rolled pickled and oiled steel, cold rolled and galvanized products. The mill has the capability to produce 1.0 million tons of cold rolled steel and 360,000 tons of galvanized steel. The facility has been operating at low utilization, primarily focusing on galvanized products. Heartland’s continuous pickling line, cold mill and galvanizing line have been upgraded, well-maintained, and are in excellent operating condition, said SDI.
Although the mill has been operating at low utilization primarily producing galvanized products, SDI plans to bring the facility to full capacity to produce high-quality colded roll and pickled and oiled products, as well as galvanized steels.
The acquisition will expand Steel Dynamics’ annual flat roll steel shipping capacity to 8.4 million tons and total shipping capability to 12.4 million tons.
The additional exposure to wider, lighter-gauge flat roll steel offerings will broaden Steel Dynamics’ value-added product portfolio. Heartland’s proximity to SDI’s other flat roll and fabrication operations will add to efficiency in production and logistics.
“The acquisition of Heartland represents a step in the continuation of our growth strategy,” said Mark D. Millett, Chief Executive Officer. “It levers our core strengths, and at the same time fulfills our initiatives to further increase value-added product and market diversification. We look forward to welcoming the Heartland employees and customers into the Steel Dynamics family, and working with them to drive future growth and success.”
Sandy Williams
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