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SDI to upgrade Jeffersonville galvanizing line

Keywords: Tags  steel, Steel Dynamics Inc., SDI, Jeffersonville, Ind., coating line, upgrade, galvalume galvanizing


NEW YORK — Steel Dynamics Inc. (SDI) will spend $7.8 million to upgrade components of its galvanizing line in Jeffersonville, Ind., in a move that could see the facility’s capacity climb by between 50,000 and 70,000 tons of coated steel products annually, according to Richard (Dick) Teets, SDI’s president and chief operating officer for steel.

The expansion project, which has already received approval from SDI’s board of directors, is expected to begin soon with commissioning anticipated by mid-2014—just in time for a projected pick-up in coated product demand, Teets told AMM.

"This is really in anticipation of a slow but improving economy with some of the building products we make with the galvalume products. We want to be prepared when the economy recovers, whether that’s in a year or two years. We don’t want to be turning away orders," Teets said.

The expansion involves several components, including the installation of a new state-of-the-art cleaning section, modifications to the furnace and an upgrade of the control systems for the line, the latter of which may result in increased line speed and capacity for certain products, Teets said.

"All galvanized products, mostly galvanized and galvalume, will be subject to an opportunity depending on coating thickness and so forth to potentially run at a faster speed and faster capacity," Teets said, noting the additional 50,000 to 70,000 tons of capacity will be spread across a number of coated products, not just galvalume.

The project is being considered for a tax abatement from the city of Jeffersonville, according to One Southern Indiana, the combined Economic Development Council and Chamber of Commerce for Clark and Floyd counties on the Indiana side of the Louisville, Ky., metropolitan area.

According to One Southern Indiana, the expansion project is estimated to include $5.7 million in machinery and equipment costs and an additional $2.1 million in related costs.

"While these investments will not result in an increased number of employees in the near term, the firm is committed to retaining 98 present-day jobs, representing an annual payroll of $8.5 million. Further, Steel Dynamics then will be in position to add additional employees in its future phases of development," the economic association said, noting that SDI will be eligible to seek local tax incentives from the Jeffersonville City Council on May 6.

SDI’s 260,000-square-foot Jeffersonville plant is capable of galvanizing 300,000 to 350,000 tons annually of cold-rolled steel produced at its nearby Butler, Ind., flat-rolled mill, according to its website. The location, which specializes in galvanizing thinner gauges as well as producing galvalume product, is also equipped with a paint line.


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