Steel Development, Ansteel Form JV to Build U.S. Mills
09/17/2010 - Steel Development Co., LLC and Anshan Iron and Steel Group Corp. (Ansteel) have executed a Joint Venture Operating Agreement along with partners from the U.S., Italy, Japan, Germany, and Canada to build a steel mill in Mississippi that will produce reinforcing bar and other bar products.
Steel Development Co., LLC and Anshan Iron and Steel Group Corp. (Ansteel) have executed a Joint Venture Operating Agreement along with partners from the United States, Italy, Japan, Germany, and Canada. The joint-venture partners plan to build a technologically advanced and environmentally friendly steel mill in Mississippi that will produce reinforcing bar and other bar products.
Under the terms of the Joint Venture Agreement, Ansteel will invest in and become a 14% partner of Steel Development. Ansteel will also become a member of Steel Development’s Board of Directors and supply certain components of Steel Development’s technology and equipment package.
Ansteel’s and Steel Development’s strategic plans include building and operating four mills to produce reinforcing bar and other bar products used in infrastructure applications (e.g., highways and bridges) and one mill that will be capable of producing electrical and silicon grades of steel used in energy applications (e.g., windmills, electrical power generation, and energy-efficient cars).
Steel Development says that the environmental and other necessary permits for its first bar mill are already in place. Early construction activity on the mill, which is located in Amory, Miss., has already been completed.
The technology for the Amory mill is being provided by a consortium of technology providers, including Danieli Corp., Tenova Core Corp., Ansteel, and Marubeni Corp. Quad Engineering, Inc. is the lead engineer for the Amory mill.
With a long-term raw material supply agreement and multi-year sale agreements in place, Steel Development expects to gain a meaningful presence in the United States’ bar market. The company notes that the United States’ market has been short of domestic rebar supply for some time.
