SDI completes deal for Severstal mill

Steel Dynamics Inc. (SDI), headquartered in Fort Wayne, Indiana, has completed the acquisition of Severstal North America’s Columbus, Mississippi, steel minimill for $1.63 billion in cash.

The mill, located on 1,400 acres, is an electric arc furnace (EAF) minimill capable of producing 3.4 million tons of steel per year. The plant features two EAFs, two ladle metallurgy furnaces, two vacuum degassers, two thin slab casters, a hot strip mill, pickle lines, an annealing line, temper mill, two hot-dipped galvanizing lines and a rewind/inspection line.

According to SDI, the facility provides unparalleled access to rail, truck and water routes, offering economical delivery to manufacturing facilities throughout the southern U.S. and Mexico.

Mark Millett, SDI CEO, says of the purchase, "I would like to enthusiastically welcome the Columbus employees, community and customers into the Steel Dynamics family. The successful completion of the Columbus acquisition is an important milestone for Steel Dynamics and represents a significant step in the continuation of our growth strategy.  The expected cash and earnings per share accretion and increased scale make this transaction a noteworthy strategic opportunity for our shareholders and all of our employees." 

SDI says the acquisition significantly expands and diversifies its steel operating base, increasing the company's annual steel shipping capacity by 40 percent to 11 million tons.

SDI also says the mill's location gives the company additional exposure to the high-growth oil country tubular goods and automotive markets, which complement Steel Dynamics' product offerings. Additionally, the mill will allow SDI to serve the high-growth markets in the southern United States and in Mexico, providing geographic diversification and growth opportunities for SDI.