Steel Technologies Inc. has signed a formal letter of intent to secure land as part of its plan to construct and operate a new steel processing facility in Juarez, Mexico.

The facility, initially valued at $8.5 million, will be strategically located to serve the fast-growing manufacturing base in the Juarez area. The new operation is expected to start up in the latter half of 2006 and will include world-class steel processing equipment and rail capabilities.

"The addition of the Juarez location adds to the network of operations Steel Technologies has in Mexico," said Mr. Carlos von Rossum G., General Director for Steel Technologies de Mexico. "In addition to the Juarez facility, we have processing centers in Monterrey and Matamoros, complemented by distribution centers in Puebla and Querertaro. Since our original investment in Mexico in 1994, we have developed a leadership position in value-added steel processing in this growing market."

"We are extremely pleased to announce this new facility in Mexico as we continue strategically to build our North American platform," said Bradford T. Ray, Chairman and CEO of Steel Technologies.

Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, railcar, construction, hardware, and consumer goods applications. The company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico.