|Steel Dynamics Roanoke Bar Division Diversifies and Expands Product Offerings with New Reheating Furnace and Finishing Equipment Purchase from SMS Group
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.
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.
|2/2/2017 11:00:00 AM