Steel Dynamics announces expansion projects

Steel Dynamics announced Thursday that its board of directors has approved a deal to work with Kobe Steel on a $235 million iron making plant in Minnesota. The deal is contingent on a long-term supply agreement for iron concentrate to make iron nuggets, securing land for the project, financing, and other unresolved issues. Steel Dynamics anticipates initial annual production capacity of 500,000 tons of iron nuggets at the plant. The company is also planning a $35 million investment at its Pittsboro, IN mill to boost the production capacity of its special bar quality (SBQ) steel. Tonnage is expected to increase from 500,000 tons to 725,000 tons. Changes at the Steel Dynamics mill include modifications to the electric furnace and billet caster and updates to the reheat furnace and rolling mill costing $10 million and $25 million respectively. Most of the upgrades are expected to be completed this year.