Steel Dynamics Concludes Acquisition of Kentucky Electric Steel Mill Assets
The mill was previously owned by Hammond, Indiana-based Specialty Steel Works, which had closed its operations earlier this year.
SEATTLE (Scrap Monster): The Fort Wayne, Indiana-based steelmaker, Steel Dynamics, Inc., today announced that it has successfully completed acquisition of idled assets of Kentucky Electric Steel mill in Ashland, northeast Kentucky.
According to the company, the acquisition deal was valued at $5 million and covered a rolling mill with estimated capacity of nearly 250,000 tons per annum. In addition, it also includes an EAF with estimated annual melting capacity of nearly 400,000 tons. Initially, the company plans to reopen the rolling mill by November this year. It must be noted that the mill was previously owned by Hammond, Indiana-based Specialty Steel Works, which had closed its operations earlier this year.
With its capability to produce special bar quality (SBQ) and merchant bar quality (MBQ) flat products, the acquisition is expected to provide significant boost to Steel Dynamics’ product diversification efforts.
Glenn Pushis, Senior Vice President, Long Products Steel Group at Steel Dynamics, Inc. noted that the complementary product offerings from the mill will provide value to its customers. The company foresees its long products steel mills to ship approximately 100,000 to 150,000 tons of billets every year, to be further processed at Ashland facility, said Pushis.
In its recently announced guidance for third quarter earnings, Steel Dynamics had projected a significantly higher range of $1.64 to $1.68 per diluted share as compared with the adjusted earnings of $1.53 per diluted share during the second quarter of 2018.