SDI Ready to Roll on Texas Mill
“The core group began site work in the second half of 2019, and we're excited to announce the recent receipt of the required environmental permitting to allow for full construction efforts to begin,” Millett told analysts during the company’s fourth-quarter earnings call.
The mill, which is being built outside of Corpus Christi, will have the capacity to produce 3 million tons annually for the southern and western U.S. and for Mexico. The EAF-based mill will include a 550,000-ton galvanizing line and a 250,000-ton paint line. It will be able to roll 84-inch-wide, 1-inch thick, 100 ksi coils as well as certain plate products, albeit on a limited basis, Millett said.
“The Texas mill will have capabilities beyond existing electric arc furnace flat roll steel producers, competing even more effectively with the integrated steel model and foreign competition,” Millett said.
The company said the mill represents a US$1.9 billion investment. The mill is scheduled to enter service in mid-2021, and Millett said he is confident that the project team will keep the project on schedule.
“Our construction and start-up team has an incredible depth of experience in the construction, start-up and operation of large steel manufacturing assets. Collectively, we believe they have more experience than exists in any other company in the industry,” he said.
Millett also said customer response to the mill has been positive.
“Customers are excited to have a regional flat-rolled steel supplier, and we have several customers already committed to locate on-site with us, representing over 800,000 annual tons of local steel processing and consumption capability,” he said.