Steel Mills
Deal with Koch Metallics Furthers BRS Growth Initiatives
Written by Tim Triplett
June 18, 2020
Big River Steel (BRS) expects to complete its capacity expansion by the end of this year more than two months ahead of expectations. The mill in Osceola, Ark., is in the process of doubling its annual steel production capacity from 1.65 million to 3.3 million tons.
BRS began operations at its $1.3 billion scrap metal recycling and flat-rolled steel production facility in 2017. It produces a wide-range of flat-rolled steels, including advanced automotive steels and electrical steels. Since operations began, BRS has provided steel to over 225 customers in the automotive, energy, construction and agricultural industries. Based on its early success, BRS began the $700 million expansion project in June 2019.
BRS also announced it will now acquire the metallics for its steelmaking operations under an exclusive agreement with Koch Metallics LLC. This new strategic partnership will allow BRS to leverage Koch’s networks, capabilities and services in support of the mill’s growth initiatives.
“Koch is a significant investor in Big River Steel, and I look forward to broadening our relationship as we jointly advance in the metallics space,” said Dave Stickler, BRS chief executive officer. “Entering into this agreement will accelerate several initiatives Big River Steel has underway that provide alternatives to the ways metallics and flat-rolled steel have historically been bought and sold.”
Koch is a global supplier of bulk materials with world class capabilities in vessel, barge, rail and truck transportation. These capabilities position BRS for improved earnings by providing scale and efficiency gains, thereby reducing raw material costs, the company said.
Martin Baker, BRS metallics procurement manager, will join the Koch team as metallics procurement and conversion manager.
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
Ternium pushes forward with growth projects despite slump in earnings and Mexican market
Ternium S.A. Fourth quarter ended Dec.31 2024 2023 Change Net sales $3,876 $4,931 -21.4% Net income (loss) $333 $554 -39.9% Per diluted share $1.43 $2.11 -32.2% Full year ended Dec.31 Net sales $17,649 $17,610 0.2% Net income (loss) $174 $986 -82.4% Per diluted share $(0.27) $3.44 -108% (in millions of dollars except per share) While […]
Kestenbaum, Ancora state their case in proxy fight for U.S. Steel
Ancora Holdings is moving forward with its proxy fight to oust U.S. Steel’s leadership and install a new board of directors and Alan Kestenbaum as CEO.
BlueScope shelves midstream facility but still upbeat on US
BlueScope Steel is pulling back on its expansion plans in the US for now but remains optimistic about the North American market.
Japanese PM cites ‘unjust political interference’ in Nippon/USS deal: Report
Japan’s Prime Minister Shigeru Ishiba said on Monday that former President Joe Biden’s decision to block Nippon Steel’s buy of U.S. Steel was “unjust political interference,” according to a report in Reuters. This comes after another Reuters report on Friday saying that President Trump would not object to Nippon taking a minority stake in the […]
Trump says Nippon will ‘invest heavily’ in USS rather than buy it
Nippon Steel has agreed to “invest heavily in U.S. Steel as opposed to own it,” President Donald Trump said on Friday during a press conference with Japanese Prime Minister Shigeru Ishiba. U.S. Steel is “a very important company” and was once “the greatest company in the world”. Of potential foreign ownership of the Pittsburgh-based steelmaker, Trump said, “the concept, psychologically, not good."