Steel Summit 2024: Hybar CEO accelerating growth plans for US steel market

Hybar’s initial plan, announced in November 2022, called for constructing two rebar mills. That plan has since grown. Stickler said this week the new goal is for “three or four bar mills,” and then possibly a flat-rolled steel mill.

Stickler also revealed that an important announcement is forthcoming in the coming week: A Fortune 300 company has agreed to take a 20% stake in Hybar, and that will allow the company to accelerate its growth and expansion plans.

Tailwinds in the rebar market

Hybar’s first mill, under construction in Osceola, Ark., is on track to start up 10 months from now. When it does, Stickler believes it will be met by some favorable tailwinds in an expanding market.

He cited nearshoring in manufacturing and government infrastructure spending as solid drivers of rebar demand going forward.

While there are some questions about a potential oversupply of rebar in the US, Stickler believes older mills will have to shut down. Some mills are 50+ years old and will simply be unable to compete with a brand new mill’s cutting-edge technology, he pointed out.

Hybar plans now to establish three or four rebar mills in the US, and then potentially a flat-rolled steel mill. A flat rolled mill is dependent on the expiration of the non-compete agreement Stickler signed with U.S. Steel after it purchased Big River Steel (BRS).

The location of Hybar’s second mill is still undecided, with potential sites identified in South Carolina, Georgia, Idaho, and Washington.

Running lean and staying focused

Stickler runs his companies as lean as possible.

He said Hybar is going sell the 630,000 tons of rebar its first mill produces annually with just two sales professionals. But “if we keep going the way we’re going, maybe I don’t need any” salespeople, he remarked.

The company previously announced that it had already pre-sold 25% of its future production. And another big deal is coming soon, as Stickler said on Tuesday that, “Within a couple of weeks, we’ll have 50%” sold.

He said the big buyer had previously sourced rebar from overseas suppliers, “but they had enough of that nonsense” and so will be sourcing from Hybar once its mill comes online.

This clearly shows that Hybar will be able to displace imports with its product, according to Stickler.

Stickler’s management philosophy involves transparency, keeping bureaucracy to a minimum, and creating a culture of continuous improvement.

He said his “goal is always to have the highest paid steelworkers in the world,” and believes he can achieve this by having everyone focused on profitability and productivity. With profitability as the only key performance indicator (KPI), “Everyone is focused on driving profits,” he said.

Mill operators, salespeople, security and janitorial staff, executives, every employee’s weekly bonus is based on that KPI to show that “we’re all tied together,” commented Stickler.

Not a believer in green steel premiums

Stickler remains unconvinced that the steel industry will be able to achieve a “green steel premium.”

When he helped set up the first BRS plant in Arkansas, the mill achieved LEED certification. People weren’t interested in paying more because it was LEED certified, he said, but some customers were willing to buy from them just because it was environmentally friendly.

“We did not achieve a green premium,” he remarked. “I’m not so sure that a green premium that everybody talks about is real. Environmental sustainability is a tiebreaker, not a game changer.”

“Maybe” they’ll be able to get $20-35/ton more from buyers for the most environmentally sustainable rebar, “But I certainly didn’t raise a billion dollars for our solar steel port and steel mill expecting a green premium,” he added.