During Steel Dynamics, Inc.’s quarterly financial results conference call, the company issued an update on the new EAF flat roll mill in Sinton, Texas.
The company said actual steel production is still planned to start before the end of 2021, and based on current forecasts, SDI said it believes shipments could be in the range of 2.0 million tons to 2.2 million tons in 2022. Based on mid-cycle flat roll metal spreads, SDI currently believes through-cycle annual EBITDA for the Sinton Texas Flat Roll Steel Mill once fully operational with access to four value-added coating lines will likely be in the range of $475 million to $525 million.
SDI also plans to invest approximately $500 million to build four additional value-added flat roll steel coating lines comprised of two paint lines and two galvanizing lines with Galvalume coating capability, a set of which will be located onsite at the new Texas steel mill, providing Sinton with the same diversification and higher-margin product capabilities as the two existing flat roll steel divisions, the company said.
The other two lines will be placed at SDI’s Heartland Flat Roll Division located in Terre Haute, Indiana to support growing coated flat roll steel demand in the region and to further increase the diversification and cash generation capacity of the company’s existing Midwest operations. Based on current estimates, SDI said it believes these four lines will likely begin operating mid-2023.