SDI Reports Major Expansion to Flat Roll Steel Product Portfolio

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) has announced acquisition of Companhia Siderurgica Nacional, LLC ("Heartland") from CSN Steel, S.L.U., a wholly-owned subsidiary of Companhia Siderurgica Nacional ("CSN"). The acquisition will help the company to expand its flat roll steel product portfolio, thereby reinforcing its position as one among the leading North American steel producers.

The $400 million cash purchase agreement is inclusive of $60 million normalized working capital, subject to price adjustments. The acquisition will enhance SDI’s flat roll steel capability by additional 1 million tons. It will boost the company’s shipping capacity per annum to 8.4 million tons and its total shipping capability to 12.4 million tons. The acquisition will broaden company’s value-added product portfolio through additional exposure to additional flat roll steel products.

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Mark D. Millett, Chief Executive Officer, SDI noted that the acquisition of Heartland marks another step in its journey of growth. It will further strengthen the company’s initiatives to enhance value-added products portfolio, alongside expanding its core capabilities. Also, Millet welcomed the Heartland employees and customers into the Steel Dynamic s family. Heartland is expected to provide several synergies with its existing operations, Millet noted. The acquisition will result in future earnings benefit to its Midwest flat roll operations, Millet added.

According to SDI press release, the transaction has already received Board approvals from both parties and is only subject to customary closing conditions and necessary regulatory approvals. SDI hopes to complete the transaction by the end of third quarter this year.

Steel Dynamics, Inc. has announced plans to run Heartland facilities at full capacity, in future. Incidentally, Heartland has been focusing only on galvanized products, operating at low capacity utilization rates.