US Steel Dynamics follows the market trend for line expansion
Oct. 17, 2019
US Steel Dynamics (SDI) positions the future by “optimizing existing operations, gradual investment and business growth”. SDI mentioned in a recent conference call that in the first half of this year, SDI Construction and Rails completed an investment of US$82 million with a capacity of 240,000 short tons/year (21.76 million tons/year) of steel expansion projects, and is now focusing on capacity enhancement. . Mark D. Millett, President and CEO of SDI, said: “The capacity growth of the expansion project is slower than expected, but key equipment is now in use. We expect capacity utilization to reach 75% in the second half of 2019.” Roanoke Bar Division (Another company's assets, in the third quarter of 2018, completed a capacity of 38 million US dollars, about 181,400 tons / year of steel expansion projects) in the first half of 2019 capacity utilization has been close to 75%.
SDI expects its unique steel supply chain model to enhance customer choice and flexibility, providing customers with significant logistics, production and working capital gains. In addition, SDI will become the largest independent reinforcement supplier in the Midwestern United States.
In addition, SDI is upgrading its production line at the Heartland plant in Terre Haute, Ind., which is a plant acquired by SDI from CSN Steel, a wholly owned subsidiary of Companhia Siderurgica Nacional, Brazil. The design production capacity of the Heartland plant finishing line is 725,600 tons/year, and SDI plans to achieve a capacity utilization rate of around 70% in the second half of this year. The Heartland plant produces 907,000 tons of CRC and 325.52 million tons of galvanized steel per year.
SDI's other investment projects to expand the production of high value-added steel products in the Flat Roll Group Columbus Division in Mississippi are also underway. Specifically, the plant is building a third galvanizing line with a production capacity of 362,800 tons/year and an investment of US$140 million. It is scheduled to start production in mid-2020. SDI also invested approximately $90 million in Columbus to further expand the company's range of steel grades, including advanced high-strength steels for the automotive and energy industries. In his speech, Mark D. Millett mentioned that these upgrades will be completed by the end of 2020, and by 2021, will allow the reduction of the current supply of uncoated steel products in the southern United States to increase the proportion of high value-added products.