Steel Dynamics Expanding Mill

Steel Dynamics Inc. announced two projects, including one project that will boost production at one of its steel mills.

In the first announcement, SDI announced plans to spend $35 million at its Pittsboro, Ind., mill, which will increase the production capacity of its special bar quality steel from 500,000 tons to 725,000 tons. Most of the investment should be complete this year.

SDI purchased the mill in January 2004. The mill had been closed before Steel Dynamics purchased the facility.

The company also announced that its board of directors approved a deal to participate with Kobe Steel on a $235 million iron making plant in the Mesabi iron range in Minnesota.

Completion of the project is contingent on a number of issues, including a long-term supply agreement that would assure the supply of iron concentrate needed for projection, securing land for project and other unresolved issues.

The decision to go ahead with the project comes after the company had backed away from the project late last year after running into problems with four partners on the Mesabi Nugget, LLC project.

The new arrangement calls for Steel Dynamics to hold a majority stake in the project and to be responsible for the construction and operation of the facility. Kobe will provide a technology license, engineering services, proprietary equipment and technical support to the project.

The initial production module is designed to have an annual production capacity of 500,000 metric tons of iron nuggets. Additional production modules may be built following successful operation of the first module.