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 facilitys capacity climb by between 50,000 and
70,000 tons of coated steel products annually, according to
Richard (Dick) Teets, SDIs president and chief operating
officer for steel.
The expansion project, which has
already received approval from SDIs board of directors,
is expected to begin soon with commissioning anticipated
by mid-2014just 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 thats in a
year or two years. We dont 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.
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.