Announcing the project on Monday, Steel Dynamics said the EAF-based flat-rolled mill would be capable of producing about 3 million tons annually. Its products would include advanced high-strength steels, hot-rolled and cold-rolled grades, galvanized sheet, Galvalume and painted steel. 

Production would target the energy and construction sectors in the U.S. and the appliance and automotive sectors in northern and mid-central Mexico. 

“The new facility will be designed with state-of-the-art technologies to produce the highest strength steels available to more comprehensively serve the automotive, energy and equipment sectors,” the company said in a statement. 

“The new technology will allow for greater steel product optionality, including the use of thicker slabs and greater width capabilities, to increase product quality and finished product application alternatives,” it added.     

The company did not say where specifically in the Southwest it intends to locate the mill, but allowed that it will “have a significant competitive edge in the region, with meaningful regional freight cost and logistics advantages.” 

The company said the final decision on the mill’s location will depend on state and local government infrastructure and incentive support. Construction is expected to start in 2020, with start-up to occur in the second half of 2021. 

With the announcement, Steel Dynamics become the latest steelmaker to announce a southern EAF project. JSW Steel’s U.S. operation in Baytown, Texas, is overhauling its facility and is installing a hot end. Meanwhile, Big River Steel is preparing to expand its plant in Arkansas even as it mulls construction of a second facility in Brownsville, Texas.