Mark Millett Joins John Packard in Steel Summit Fireside Chat

SDI’s Entry into Aluminum

SDI has made big news with its recent announcement that it will enter the aluminum market with a $2.2 billion investment, building a brand-new aluminum sheet mill in the southeastern US. Packard asked Millett about that decision. “How many people in the crowd buy and sell aluminum?” Millett asked Summit attendees. Looking around and chuckling at the number of raised hands in the crowd of nearly 1,300, he said: “It looks like we made the right decision.”

“SDI has had aluminum on the radar since 2013. Now is a “good time to get into aluminum,” Millett said, as the industry today is in a supply deficit, there is an ongoing social switch from plastic bottles to aluminum cans, and aluminum use is projected to grow together with the electric vehicle industry.

Aluminum Dynamics Inc. (ADI) will likely be the name of SDI’s new aluminum segment, Millett noted, joking about the extreme creativity of the name.

Sinton Steel Mill Start-Up Update

Packard inquired about the latest on SDI’s newest steel sheet mill in Sinton, Texas. Millett’s update was not too different from comments made on the company’s second quarter earnings conference call last month: When the mill is running, it is running near capacity, it’s just a matter of getting it to run every day. It is projected to be running at 50% of capacity in the next month or two, to get up to 80% by year’s end, and up to maximum capacity next year.

In addition to its close proximity and ability to penetrate the Mexican market, SDI can now readily serve the 3-to-4-million-ton West Coast market via the Sinton mill, as it can offer the cheapest freight from any domestic mill through and around the Rockies.

Is SDI looking at Producing Electrical Steels?

With huge growth demand projected for electrical steels as the world shifts from internal combust engines to electrical vehicles, Packard asked if SDI is considering getting into electrical steel production. “Yes,” Millett stated. “Yes, we’re looking at electrical steel, the same way as we look at any other growth opportunity,” meaning through both organic growth as well as through acquisitions. “We always search for differentiation and diversification,” he noted.

Don’t miss SMU’s 2023 Steel Summit conference next year in Atlanta, Aug. 21–23, 2023, where you can hear the full conversations and see the latest presentations from mill and service center executives, analysts, associations, and others, as well as engage in some of the industry’s top networking opportunities.

By Laura Miller, Laura@SteelMarketUpdate.com