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Researched by Industrial Info Resources (Sugar Land, Texas)--As it wraps up construction on its flat-roll steel mill in Sinton, Texas, Steel Dynamics Incorporated (NASDAQ:STLD) (Fort Wayne, Indiana) expects capital investments for 2022 to be as much as $750 million, down substantially from this year's spending. Industrial Info is tracking is tracking $2.65 billion worth of active projects by Steel Dynamics, with the Texas project taking the lion's share.
Capital expenditures this year for Steel Dynamics are expected to run more than $1 billion.
Next year's capital expenditures will include investments to start construction on four new flat-roll steel coating lines, including two at Sinton and two at the company's Heartland facility in Terra Haute, Indiana, said Chief Financial Officer Theresa Wagler on Tuesday during the company's third-quarter earnings conference call with industry analysts.
The company expects to invest $500 million on the four lines, comprising two paint lines and two galvanizing lines, with one paint and galvanizing set in Sinton, and the other set in Terra Haute. The company plans to begin operating the new lines in mid-2023. The new lines will increase the company's steel coating capacity by 540,000 tons per year, said Chief Executive Officer Mark Millett during the earnings conference call. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the related reports.
In Sinton, the company still expects the $1.9 billion mill to begin producing steel by the end of this year despite some issues caused by the latest COVID-19 flareup, which limited the number of contractors allowed on site, as well as a shortage in night-time electricians and the delayed delivery of a crane, Millett said. Steel shipments from the mill are expected to run between 2 million tons and 2.2 million tons next year.
Located near Corpus Christi, construction on the Sinton mill kicked off in late 2019. The plant will produce a variety of flat-rolled products, including hot-rolled, cold-rolled, galvanized and painted steel to help serve the energy, automotive, construction and appliance sectors. Subscribers can click here for the project report.
Steel Dynamics reported record net income of $991 million and sales of $5.1 billion for the just-ended third quarter as the company continued to ride the wave of high steel demand in the U.S. The company reported its facilities had a utilization rate of 93% operational capacity in the third quarter, compared with the industry average of 85%.
"Third-quarter operating income from our steel operations was a record $1.4 billion, and our metals recycling operations sustained strong earnings, even as scrap prices declined in August and September," Millett said in a press release. "Our steel fabrication operations achieved record operating income over three times sequential second-quarter results and once again achieved record quarterly shipments. Our steel fabrication backlog continues to grow, remaining at record volumes and forward-pricing."
Millett said in the earnings conference call he expected the wave of favorable earnings and sales to continue during the fourth quarter and into 2022.
While the downstream automotive sector is operating at low production rates due to the global semiconductor chip shortage, Steel Dynamics has yet to feel the impact, he said. Steelmakers will benefit when the auto industry begins to recover from the chip shortage, he added.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
Capital expenditures this year for Steel Dynamics are expected to run more than $1 billion.
Next year's capital expenditures will include investments to start construction on four new flat-roll steel coating lines, including two at Sinton and two at the company's Heartland facility in Terra Haute, Indiana, said Chief Financial Officer Theresa Wagler on Tuesday during the company's third-quarter earnings conference call with industry analysts.
The company expects to invest $500 million on the four lines, comprising two paint lines and two galvanizing lines, with one paint and galvanizing set in Sinton, and the other set in Terra Haute. The company plans to begin operating the new lines in mid-2023. The new lines will increase the company's steel coating capacity by 540,000 tons per year, said Chief Executive Officer Mark Millett during the earnings conference call. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the related reports.
In Sinton, the company still expects the $1.9 billion mill to begin producing steel by the end of this year despite some issues caused by the latest COVID-19 flareup, which limited the number of contractors allowed on site, as well as a shortage in night-time electricians and the delayed delivery of a crane, Millett said. Steel shipments from the mill are expected to run between 2 million tons and 2.2 million tons next year.
Located near Corpus Christi, construction on the Sinton mill kicked off in late 2019. The plant will produce a variety of flat-rolled products, including hot-rolled, cold-rolled, galvanized and painted steel to help serve the energy, automotive, construction and appliance sectors. Subscribers can click here for the project report.
Steel Dynamics reported record net income of $991 million and sales of $5.1 billion for the just-ended third quarter as the company continued to ride the wave of high steel demand in the U.S. The company reported its facilities had a utilization rate of 93% operational capacity in the third quarter, compared with the industry average of 85%.
"Third-quarter operating income from our steel operations was a record $1.4 billion, and our metals recycling operations sustained strong earnings, even as scrap prices declined in August and September," Millett said in a press release. "Our steel fabrication operations achieved record operating income over three times sequential second-quarter results and once again achieved record quarterly shipments. Our steel fabrication backlog continues to grow, remaining at record volumes and forward-pricing."
Millett said in the earnings conference call he expected the wave of favorable earnings and sales to continue during the fourth quarter and into 2022.
While the downstream automotive sector is operating at low production rates due to the global semiconductor chip shortage, Steel Dynamics has yet to feel the impact, he said. Steelmakers will benefit when the auto industry begins to recover from the chip shortage, he added.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
