SDI Announces Plan to Expand Capacity at Indiana Plant

The board of directors for the steel company Steel Dynamics Inc. (SDI), headquartered in Fort Wayne, Ind., has approved the expansion of its Engineered Bar Products Division in Pittsboro, Ind. The expansion is intended to increase the steel mill's capacity to produce special-bar-quality (SBQ) steel and to expand the mill's product offerings of high-quality small-diameter SBQ bars, the company says.
 

When the expansion is complete, the mill’s annual production capacity is expected to increase from 625,000 tons per year to 950,000 tons per year, a 52 percent increase. 
 

The project is scheduled to be completed in the second half of 2013 and cost about $76 million. The expansion includes numerous enhancements to the facility's rolling mill to produce precision-sized bars, as well as improvements in material handling and staging. The company also says it plans to expand the mill's bar finishing capabilities for nondestructive testing of finished bars, potentially doubling its inspection capacity.
 

The principal modification to the mill is the planned addition of a second rolling line that will permit the concurrent production of small-diameter precision and larger-diameter bars. The company says it believes the expansion can be accomplished with no disruption to existing operations, as the new line is essentially separate from current operations. 
 

Billets for the new rolling mill are expected to be supplied by existing capacity at the Pittsboro melt shop as well as production from SDI’s Structural and Rail Division. 
 

“We are excited to announce this growth initiative,” Mark Millett, SDI CEO, says. “This investment will allow us to further expand and diversify our value-added product portfolio in a capital efficient manner. Our customers have encouraged us to expand our product offerings as a means of further establishing the Pittsboro facility as a one stop shop for all of their SBQ needs. 
 

“Since startup in 2004, our Engineered Bar Product's team has partnered with a variety of customers to supply them with high-quality SBQ products. Our team has achieved a reputation for on-time performance, flexibility in scheduling, and consistent high quality. With this new investment, we expect to be able to build on that reputation. We plan to continue to offer these service and quality benefits, along with a broader product portfolio to our existing customers, and we look forward to establishing relationships with new customers.”