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Steel Dynamics to Add Painting and Galvalume Capabilities at Columbus Steel Mill

Steel Dynamics, Inc. today announced plans to expand its offering of value-added flat roll steel products through the addition of painting and Galvalume capabilities at its Columbus, Mississippi steel mill.

The company plans to invest approximately $100 million and create 40 new jobs in order to add production capability of higher-margin pre-painted and Galvalume flat roll steel.

"This investment is a strategic step toward further diversification into higher-margin products for our Columbus Flat Roll Division," said Mark D. Millett, Chief Executive Officer. "The additional width capability and vacuum degassing equipment at the Columbus steel mill, enables us to further diversify our pre-painted product offerings by physical aspect and geography. We already have two paint lines and the ability to produce Galvalume steel in Indiana. However, the Columbus investment will allow us to produce double-wide steel, and sell into the southeastern markets, including Mexico. We plan to sell surface-critical, appliance-grade steel, as well as construction related products, including those used in heating and air conditioning units, residential entry doors, and lighting fixtures."

The most significant portion of the expansion will be the addition of a state-of-the-art continuous coil paint line with an annual coating capacity of 250,000 tons. Operations are expected to begin during the first quarter of 2017, based on an 18 month project timeline, which includes permitting requirements. The Columbus paint line will utilize an improved design similar to the company's existing two lines located in Indiana.

"We have achieved significant success related to our existing pre-painted flat roll steel business," stated Millett. "Our customers recognize the quality of our products and the benefit of our shorter order-cycle, relative to competitor supply chains. We are the only domestic steel company to have a contiguous paint line at a production location, offering painted steels directly to the consumer.  As a result of our supply chain efficiency, customers benefit from reduced logistic, administrative and inventory carrying costs."

This growth project also includes the addition of equipment to an existing Columbus galvanizing line to enable production of Galvalume, or aluminum-zinc alloy coated flat roll steel. The combination of aluminum and zinc significantly enhances corrosion performance and solar reflectivity, making it the material of choice for premium metal roofing used in construction.

"Additionally, we are appreciative and impressed by the support we received from the State and Local organizations of Mississippi," said Millett. "We are extremely grateful to Governor Phil Bryant for taking a personal interest in our project. We also thank Mr. Joe Roberts and the staff of the Mississippi Development Authority, the Lowndes County Board of Supervisors and Industrial Development Authority, Appalachian Regional Commission, Mr. John Davis and the LINK Board, Mr. Joe Higgins and the staff of LINK, and the Tennessee Valley Authority."


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