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Released January 25, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Steel Dynamics Incorporated (NASDAQ:STLD) (Fort Wayne, Indiana) recently highlighted its growth efforts, which include $2 billion in capital investment in 2024, of which $1.4 billion is allocated to aluminum-related projects. The company recorded $1.7 billion in capital investment in 2023. Industrial Info is tracking $2.9 billion worth of projects from Steel Dynamics.
In a January 23 press release highlighting the company's fourth-quarter and annual 2023 financial results, Mark Millett, Steel Dynamics' chief executive officer, said the company "continues to be in a position of strength" entering 2024.
Millett pointed directly to ramping up of operations at the company's grassroot flat-rolled steel mill in Sinton, Texas, which will utilize an electric arc furnace (EAF) to produce 3 million tons per year of various flat-rolled steel products.
In addition, he said Steel Dynamics plans to commission four new flat-rolled coating lines in the first quarter--two at the Sinton mill and two others in Indiana--which will increase the company's value-added flat rolled steel annual capacity by 1.1 million tons. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for related project reports and here for the related plant profiles.
"This demand environment, in combination with our ongoing expansion initiatives, provide firm drivers for our continued growth," Millett said. "The team continues to make great progress on our aluminum flat rolled products mill and related investments."
Through its unit Aluminum Dynamics, Steel Dynamics kicked off construction of the $1.9 billion Columbus Aluminum Flat Rolled Steel Mill in Mississippi in second-quarter 2023, with commissioning expected in mid-2025. It will produce 650,000 tons of finished products annually to serve the sustainable beverage packaging, automotive and common-alloy industrial sectors. To support the mill, Steel Dynamics also is establishing two grassroot aluminum recycling plants, one in Mexico and the other in Arizona, to supply aluminum slab. Subscribers can learn by viewing the project reports on the rolling mill, Arizona recycling plant and Mexican recycling plant.
Steel Dynamics also aims to decarbonize its operations, and Millett pointed to the construction of a biocarbon production facility at its steel mill in Columbus, the end-product of which will fuel the mill's EAF and replace the use of anthracite, reducing the company's greenhouse gas emissions in the steelmaking process. The company will use technology provided by Aymium (Gwinn, Minnesota), which according to its website uses sustainably sourced biomass to manufacture biocarbon products, including recovered and unusable wood.
The two-phase effort will have a combined capital investment of $260 million, and construction on the first phase began in January 2023; Millett expects the facility will be operational before the end of this year. Subscribers can read detailed information on Phase 1 and Phase II.
Millett also noted the company has a power purchase agreement (PPA) in place with NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) to offtake renewable energy for its steelmaking operations.
Steel Dynamics saw record annual steel shipments of 12.8 million tons in 2023, up from the previous record of 12.2 million tons in 2022. "Underlying domestic steel demand was firm throughout 2023 supported by the construction, automotive, industrial, and energy sectors," Millett said in the recent earnings press release. "Customer steel inventories also remained below historical averages, in combination resulting in generally steady order patterns." He said the record steel shipments resulted in operating income of $1.9 billion (out of $3.2 billion in total operating income).
Steel Dynamics reported its second-highest annual net sales of $18.8 billion, although that was down 16% from $22.3 billion in 2022. "Lower earnings were driven by metal spread contraction within the company's steel and steel fabrication operations, as lower realized product pricing outpaced lower primary raw material costs," the company said.
Subscribers to Industrial Info's GMI Database can click here for a look at the reports for all of the projects discussed in this article, and click here for the related plant profiles.
Click here for a full list of active projects from Steel Dynamics in North America.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
In a January 23 press release highlighting the company's fourth-quarter and annual 2023 financial results, Mark Millett, Steel Dynamics' chief executive officer, said the company "continues to be in a position of strength" entering 2024.
Millett pointed directly to ramping up of operations at the company's grassroot flat-rolled steel mill in Sinton, Texas, which will utilize an electric arc furnace (EAF) to produce 3 million tons per year of various flat-rolled steel products.
In addition, he said Steel Dynamics plans to commission four new flat-rolled coating lines in the first quarter--two at the Sinton mill and two others in Indiana--which will increase the company's value-added flat rolled steel annual capacity by 1.1 million tons. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for related project reports and here for the related plant profiles.
"This demand environment, in combination with our ongoing expansion initiatives, provide firm drivers for our continued growth," Millett said. "The team continues to make great progress on our aluminum flat rolled products mill and related investments."
Through its unit Aluminum Dynamics, Steel Dynamics kicked off construction of the $1.9 billion Columbus Aluminum Flat Rolled Steel Mill in Mississippi in second-quarter 2023, with commissioning expected in mid-2025. It will produce 650,000 tons of finished products annually to serve the sustainable beverage packaging, automotive and common-alloy industrial sectors. To support the mill, Steel Dynamics also is establishing two grassroot aluminum recycling plants, one in Mexico and the other in Arizona, to supply aluminum slab. Subscribers can learn by viewing the project reports on the rolling mill, Arizona recycling plant and Mexican recycling plant.
Steel Dynamics also aims to decarbonize its operations, and Millett pointed to the construction of a biocarbon production facility at its steel mill in Columbus, the end-product of which will fuel the mill's EAF and replace the use of anthracite, reducing the company's greenhouse gas emissions in the steelmaking process. The company will use technology provided by Aymium (Gwinn, Minnesota), which according to its website uses sustainably sourced biomass to manufacture biocarbon products, including recovered and unusable wood.
The two-phase effort will have a combined capital investment of $260 million, and construction on the first phase began in January 2023; Millett expects the facility will be operational before the end of this year. Subscribers can read detailed information on Phase 1 and Phase II.
Millett also noted the company has a power purchase agreement (PPA) in place with NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida) to offtake renewable energy for its steelmaking operations.
Steel Dynamics saw record annual steel shipments of 12.8 million tons in 2023, up from the previous record of 12.2 million tons in 2022. "Underlying domestic steel demand was firm throughout 2023 supported by the construction, automotive, industrial, and energy sectors," Millett said in the recent earnings press release. "Customer steel inventories also remained below historical averages, in combination resulting in generally steady order patterns." He said the record steel shipments resulted in operating income of $1.9 billion (out of $3.2 billion in total operating income).
Steel Dynamics reported its second-highest annual net sales of $18.8 billion, although that was down 16% from $22.3 billion in 2022. "Lower earnings were driven by metal spread contraction within the company's steel and steel fabrication operations, as lower realized product pricing outpaced lower primary raw material costs," the company said.
Subscribers to Industrial Info's GMI Database can click here for a look at the reports for all of the projects discussed in this article, and click here for the related plant profiles.
Click here for a full list of active projects from Steel Dynamics in North America.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
