Fort Wayne-based Steel Dynamics Inc. is growing its involvement in the market for sheet aluminum in a big way.
The company said Tuesday it plans to invest $2.2 billion in three new production facilities.
SDI said its board of directors has authorized construction and operation of a 650,000-metric-ton low-carbon, recycled aluminum flat-roll mill and two supporting satellite recycled aluminum slab centers.
The mill is to be located in the southeastern U.S., and the slab centers are to be located in the southwestern U.S. and in Mexico.
The mill would be the first new aluminum flat-rolled mill constructed in North America in more than 40 years, the company said.
SDI said it plans “to bring the ‘mini-mill’ culture and related operating efficiency to the flat-rolled aluminum industry.”
A significant number of SDI’s carbon flat-rolled steel customers are also consumers and processors of aluminum flat-rolled products, said Mark Millett, SDI’s chairman, president and CEO, in a statement.
“We are incredibly excited to announce this meaningful growth opportunity, which is aligned with our existing business and operational expertise,” he said.
The company’s aluminum products will be used in beverage cans and the automotive industry, he said.
SDI said the North American market for flat-rolled aluminum has a supply deficit of more than 2 million metric tons and has been forced to buy about a quarter of its supply from abroad at higher cost.
The rolling mill is expected to start operating in 2025; the company estimates generating $650 million to $700 million in annual earnings from the project.
Reporter Rosa Salter Rodriguez has nearly 50 years of experience at newspapers in Pennsylvania and Indiana. She has worked at The Journal Gazette since 2004, covering medical and health issues and land use and development issues.
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