Steel Dynamics to Invest in Pittsboro Mill

March 2, 2007 — Steel Dynamics, Inc.’s Board of Directors has approved an investment of $35 million to expand production capacity at its Pittsboro, Ind., Engineered Bar Products Division.

Changes to the mill will include roughly $10 million in modifications to the EAF and continuous caster, and about $25 million in modifications to the rolling mill and reheat furnace. SDI plans for the bulk of the investment to be completed in 2007.

SDI’s planned modifications are expected to increase the mill’s annual production capacity for special-bar-quality (SBQ) steels from the current 500,000 tons per year to about 725,000 tons per year. The mill's principal products will continue to be SBQ round bars in a range of one to nine inches in diameter.

Production volume has grown rapidly at the Pittsboro mill since 2004 when Steel Dynamics restarted the facility after acquiring it out of bankruptcy. SDI added an on-site bar-processing and finishing facility in 2006, which has opened up new customer opportunities for the mill, enhanced customer relationships, and allowed SDI to enter new market segments for SBQ products.

In 2006, the mill shipped 502,000 tons, supplying high-quality carbon and alloy steel to a variety of customers, including those in the heavy machinery, agriculture, transportation, and energy industries. Caterpillar, Inc. recently awarded a 2006 Quality Excellence Award to SDI’s Engineered Bar division for providing defect-free SBQ steel to Caterpillar NA in 2006.