SDI Considers San Patricio County as Site for its New $1.8 Billion Steel Mill

SEATTLE (Scrap Monster): San Patricio County in South Texas may become home to the new $1.8 billion flat roll steel mill to be built by Steel Dynamics Inc., (SDI). Reports indicate that San Patricio County has shown huge interest in bringing the steelmaking facility into the County, which in turn will lead to creation of hundreds of jobs and significant recovery to the region’s economy.

San Patricio County Judge David Krebs noted that the SDI facility will turn out to be a tremendous opportunity for the middle part of the county, which has seen lesser growth when compared to east. The County is in negotiations with SDI, he said. The company representatives, who were present in the commissioners court meeting confirmed that SDI is looking at San Patricio as a possible site for its proposed flat roll mill.

The County Commissioners, on Monday, had given approval for a new reinvestment zone, which in turn could help SDI to seek economic incentives including tax abatements. However, residents have already raised concerns over proximity of the proposed plant to the town, although company officials turned down noise concerns of nearby residents.

Meantime, sources indicate that the company has not yet made a final decision on the site. In fact, SDI is simultaneously looking at locations in three other states as well.

SDI intends to invest around $1.7-$1.8 billion to construct a new state-of-the-art EAF flat roll steel mill in southwestern U.S. The construction of the plant is expected to begin in 2020. It expects the facility to become operational by H2 2021.