| Steel Dynamics Closes Purchase of Qualitech Steel Assets |
| FORT WAYNE, INDIANA, September 9, 2002—Steel Dynamics, Inc. (NASDAQ: STLD)
today announced that it has completed the purchase of Qualitech Steel
SBQ LLC’s special bar quality mini-mill assets located in Pittsboro,
Indiana. Steel Dynamics paid $45 million for these assets.
Steel Dynamics previously announced plans to invest between $60 and $70 million of additional capital to convert the Qualitech facility to the production of merchant bars and shapes and reinforcing bar products. The company does not currently plan to produce special bar quality (SBQ) products when the facility is restarted, but has not ruled out the possibility of producing SBQ products there in the future. “Acquiring this mill fits our strategy of pursuing product growth and diversification,” Keith Busse, SDI’s president and chief executive officer, said. “We feel that we have acquired a nearly-new Indiana production facility at a very reasonable cost, and, with our planned reconfiguration costs, it should enable us to enter the merchant bar and shapes market as a low-cost producer of these products.” On August 19, 2002, the Hendricks County, Indiana, Superior Court denied a request by Nucor Corporation to preliminarily enjoin Qualitech’s sale to SDI, finding that Nucor had little chance of prevailing on its claim that it had an earlier and enforceable purchase agreement to buy the Pittsboro mill. Nucor has appealed that ruling. In light of the trial court’s ruling, however, Steel Dynamics has elected to close the transaction and to begin the process of engineering work and conversion planning. The company also intends to proceed with the preparation and filing of the necessary environmental air permit application. Most of SDI’s additional investment is expected to occur in 2003. Current plans are to complete the conversion during the fourth quarter of 2003. After conversion, the facility is expected to have a capacity of 500,000 to 600,000 tons per year. Steel Dynamics manufactures a variety of hot- and cold-rolled steel products at its Butler, Indiana, flat-roll mini-mill and has recently begun initial beam production at its new Columbia City, Indiana, structural steel and rail facility. For more information about Steel Dynamics, Inc., please visit www.steeldynamics.com. Forward Looking Statements:This press release contains predictive statements about future events, including statements related to conditions in the steel marketplace, costs of steel production, selling prices, and other factors affecting the company’s future revenues and profitability. These statements are intended to be made as “forward-looking” within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Reference is made to SDI’s detailed explanation of the many factors and risks that may cause such predictive statements to turn out differently, as set forth in SDI’s most recent Annual Report on Form 10-K and other reports from time to time filed with the Securities and Exchange Commission, available publicly on the SEC’s Web site. Contact: Fred Warner, Investor Relations Manager |
| 9/9/2002 |