Steel Mills

SDI to Announce Location of New Aluminum Mill Soon
Written by Laura Miller
October 20, 2022
Steel Dynamics Inc. plans to announce where its new aluminum flat-rolled mill will be located within the next few weeks.
Site selection is wrapping up, and the purchase of equipment packages and major mill components has been completed over the past few weeks, SDI chairman, president, and CEO Mark Millett said on the company’s third-quarter earnings conference call on Thursday, Oct. 20.
The new mill, with an annual production capacity of 650,000 metric tons, will be built somewhere in the Southeastern US, as the company has previously disclosed. Two slab centers — one in Northcentral Mexico and the other in the Southwestern US — will supply half of the 900,000 metric tons of recycled slab the mill will require each year. The other 50% will be supplied onsite, SDI said.
SDI anticipates spending $2.2 billion over the next four years on the aluminum project and says it will be 100% funded by cash from its operations. For 2023, $750 million in capex funding is planned for the project.
SDI’s move into the aluminum market, which was announced in July, has already garnered “incredible interest” from customers and other interested parties. “We’ve had initial conversations with all but one major beverage outfits/can makers,” Millett said. “Also in automotive, several folks have approached us to partner with us going forward.” As for contract volumes and pricing, it’s still too early to say, he said on the call.
Millett sees many similarities between SDI’s entrance into the aluminum market and the start of the company in the early 1990s. The industry is currently saddled with aging facilities, high legacy costs, and inefficiencies. A new aluminum mill hasn’t been built in the US in 45 years, he said. Thus its entrance into this market is incredibly exciting and holds great opportunities for SDI, and it will serve as the company’s “foundation [for growth] for the next 25 years.”
By Laura Miller, Laura@SteelMarketUpdate.com

Laura Miller
Read more from Laura MillerLatest in Steel Mills

Nippon could up investment in USS facilities to $7B: Report
It's the latest twist as the proxy battle heats up for Pittsburgh-based U.S. Steel.

Hybar expansion still on the table as Arkansas mill startup nears
As Hybar nears the completion of its $700-million rebar mill in Arkansas, the company said it is still “actively considering” building other steel facilities in the southern US.

Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.

Fate of U.S. Steel hangs in the balance
The future of U.S. Steel remains unclear, but the proxy fight for control of the company is heating up. Shareholders will cast their votes on the company's future at the annual meeting in May.

Cliffs to idle Dearborn blast furnace, restart Cleveland furnace by July
Cleveland-Cliffs has decided to idle the steelmaking operations at its Dearborn Works in Michigan due to weak automotive demand.