FORT WAYNE, Ind., April 15, 2011 /PRNewswire/ -- Steel Dynamics, Inc. (NASDAQ/GS: STLD) and LaFarga Group, headquartered in Barcelona, Spain, today jointly announced the creation of a new partnership which will operate under the SDI LaFarga, LLC name. Plans include the construction of a $39 million facility which will produce copper wire rod from recycled copper. Investigations of potential sites in Allen County, Indiana are currently underway. This new venture is expected to result in the creation of 35 new full-time management, administrative and production positions by 2013.
The venture utilizes various grades of recycled copper scrap as its primary raw material in the production of higher margin copper wire rod. As an intended provider of a portion of the copper scrap to the new venture, Steel Dynamics benefits from a new alternative domestic market for its recycled copper. Historically, a large portion of Steel Dynamics copper scrap is exported to China.
"We are proud to incorporate the advanced manufacturing technology of LaFarga Group in a state-of-the-art facility that deepens our commitment to Northeast Indiana and Allen County," said Mark Millett, President and Chief Operating Officer of Steel Dynamics, Inc. Oriol Guixa, Chief Executive Officer of LaFarga Group commented: "This joint venture represents our first expansion into the United States and we are proud to partner with Steel Dynamics, a proven leader in the metals industry."
Steel Dynamics, Inc. (SDI) is one of nation's largest producers of carbon steel and one of the largest metals recyclers with 2010 revenues of $6.3 billion. The primary sources of revenues are from the manufacture and sale of steel products; processing and sale of recycled ferrous and nonferrous metals; and to a lesser degree, fabrication and sale of steel joist and decking products. Based in Fort Wayne, Indiana, SDI employs more than 6,180 people. Additional information about the company is available at www.steeldynamics.com.
LaFarga Group, through its subsidiaries, engages in the manufacture and marketing of various types of copper products internationally. Its subsidiaries engage in the manufacture of semi-finished copper products, including copper wires, wire rods, billets, and railway products from recycled copper; production, sale, and distribution of copper pipes to plumbing, heating, air conditioning, refrigeration, and industrial markets; and manufacture of electrolytic copper rods from high grade cathodes. The company was founded in 1808 and is based in Barcelona, Spain. Additional information about the company is available at www.lfl.es.
Forward Looking Statements
This press release contains some predictive statements about future events, including statements related to conditions in the steel and metallic scrap markets, Steel Dynamics' revenue, costs of purchased materials, future profitability and earnings, and the operation of new or existing facilities. These statements 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. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.
Factors that could cause such predictive statements to turn out other than as anticipated or predicted include, among others: the effects of prolonged or deepening recession on industrial demand; general or specific sector (i.e., automotive, consumer appliance or construction) economic conditions affecting steel consumption; the impact of price competition, whether domestic or the result of foreign imports; difficulties in integrating acquired businesses; risks and uncertainties involving new products or new technologies; changes in the availability or cost of steel scrap or substitute materials; increases in energy costs; occurrence of unanticipated equipment failures and plant outages; labor unrest; and the effect of the elements on production or consumption.
More specifically, we refer you to SDI's 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, 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, available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com
Forward-looking or predictive statements we make are based upon information and assumptions, concerning our businesses and the environments in which they operate, which we consider reasonable as of the date on which these statements are made. Due to the foregoing risks and uncertainties however, as well as, matters beyond our control which can affect forward-looking statements, you are cautioned not to place undue reliance on these predictive statements, which speak only as of the date of this press release. We undertake no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Steel Dynamics, Inc.