Steel Dynamics, a Fort Wayne, Ind., steel company, announced plans to acquire an Indiana mini-mill facility from Qualitech Steel. The price is $45 million. The bid trumps a bid, made by Nucor Corp., earlier this summer, to acquire the mill.
Steel Dynamics expects to close the deal within the next 30 days. After completing the acquisition, the company will start a $60-70 million project to convert the Pittsboro, Ind., facility to produce between 500,000-600,000 tons of merchant and reinforcing bar products. The product is expected to be complete within a year.
“We are pleased that the opportunity to re-look at this facility recently materialized,” said Keith Busse, president and CEO. “We have wanted to establish a presence in the merchant shapes business for some time now, and believe that this new facility will be our platform from which to launch that new business.
”Nucor’s bid for the mill, made June 17, called for the North Carolina steel company to purchase the assets for $37 million. In a release, Dan DiMicco, CEO of Nucor, said Nucor was “surprised” by the announcement.
“Nucor has been proceeding in good faith to complete its due diligence, obtain necessary approvals and resolve all other outstanding matters in order to close this transaction within the next few days,” DiMicco added. “Nucor is investigating the implications of this announcement and intends to pursue all of its options, including legal.”
Steel Dynamics manufactures a variety of hot- and cold-rolled steel products at its Butler, Indiana, flat-roll mini-mill and has recently begun initial beam production at its new Columbia City, Indiana, structural and rail facility.