Indiana-based Steel Dynamics Inc. (NASDAQ: STLD) announced it will build a $1.9 billion mill in Sinton, Texas, about 25 miles northwest of the Port of Corpus Christi.
The site for the new mill is strategically located for the southwestern United States and Mexican markets, the company said in a statement July 23. Steel Dynamics is one of the largest domestic steel producers and metals recyclers in the U.S.
“We have been developing a flat roll steel business strategy for this region and Mexico for several years,” said Mark Millett, president and chief executive officer of Steel Dynamics. “We believe a majority of the customer base will experience a significant freight savings compared to their current supply-chain configurations.”
The mill will use electric furnaces to turn scrap metal into sheets and strips of steel for the energy, automotive, construction and appliance industries.
The mill project could generate between $113 million to $223 million a year, Steel Dynamics reported in a filing with the Texas Comptroller of Public Accounts.
Millet said the new mill site will provide access to several markets where the company believes demand for steel will grow, including Arkansas, Louisiana, Mexico, Oklahoma, Texas and the West Coast.
The site already has transport access to railroads and highways, and the Port of Corpus Christi and is less than 200 miles from the U.S.-Mexico border.
Sinton is a town of around 5,000 people located in a region of Texas known as the Coastal Bend. The Gulf of Mexico is less than 30 miles away.
Steel Dynamics said there will be around 600 full-time jobs at the new mill. Workers at the plant could earn up to $80,000, according to the Corpus Christi Regional Economic Development Corp.
The new steel mill could be finished and operating by 2020, Millet said.
“This is a wonderful employer that will have a major positive impact that will be felt throughout the region,” said Iain Vasey, president and chief executive officer of the Corpus Christi Regional Economic Development Corp.
Fort Wayne, Indiana-based Steel Dynamics currently operates six steel mills, including facilities in Indiana, Michigan, Mississippi and Pennsylvania. Three of Steel Dynamics’ mills are located in Pittsburgh. The company employs around 8,000 workers.
Image Sourced by Pixabay