FORT WAYNE, Ind., Feb. 2, 2017 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) recently awarded the contract for an expansion at its Roanoke Bar Division, located in Roanoke, Virginia to SMS group. The upgrade is to integrate a new reheating furnace and a new finishing area into the facility. With this $28 million investment, the Roanoke Bar Division plans to utilize its existing excess melting and casting capability to increase rolling capacity from the current 500,000 tons to over 600,000 tons per year.
"With the addition of this equipment which allows for multi-strand slitting and rebar finishing, we expect the added product diversification and our existing highly competitive cost structure to allow us to quickly grow market share. Additionally, we will be one of the largest independent rebar suppliers without our own rebar fabricating business, which we believe will be a positive for our new customer base," said Joe Crawford, Vice President and Roanoke Bar Division General Manager.
The supply package is comprised of a pusher-type high capacity reheating furnace designed to process 140 tons of billets per hour. The plan is to roll the billets into light sections and reinforcing bars from sizes #4 to #11, as well as corresponding round bars. The objective of the new reheating furnace is not only to increase productivity but also to significantly improve energy efficiency, with the adoption of a smart combustion management system.
After the upgrade, the Roanoke Bar Division expects to increase production of rebar to over 200,000 tons per year. Commissioning is expected to commence at the end of 2017.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. is one of the largest domestic steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
This press release contains some predictive statements about future events, which may include statements related to conditions in the steel market and Steel Dynamics' operation of new or existing facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project" or "expect," or by the words "may," "will," or "should," are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) cyclical and changing industrial demand; (3) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for particular products, including the strength of the non-residential and residential construction, automotive, appliance, pipe and tube, and other steel-consuming industries; (4) fluctuations in the cost of key raw materials (including steel scrap, iron units, and energy costs) and our ability to pass-on any cost increases; (5) the impact of domestic and foreign import price competition; (6) unanticipated difficulties in integrating or starting up new or acquired businesses; (7) risks and uncertainties involving product and/or technology development; and (8) occurrences of unexpected plant outages or equipment failures.
More specifically, we refer you to Steel Dynamics' more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission. These are available publicly on the SEC website, www.sec.gov, and on the Steel Dynamics website, www.steeldynamics.com.
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SOURCE Steel Dynamics, Inc.