NEW YORK — Steel Dynamics Inc (SDI) has agreed to purchase the assets of the idled Kentucky Electric Steel (KES), according to a June 19 commercial announcement from the Fort Wayne, Indiana-based steelmaker.
American Metal Market reported in mid-June that SDI was interested in acquiring KES. "As part of the SDI family, we expect to enjoy administrative, billet supply, and market synergies," the steelmaker said in the announcement.
Steel of West Virginia, an SDI subsidiary, will be in charge of the overall management of the newly acquired facility, with KES' rolling mill expected to start back up late in the third quarter.
The acquisition will add flats and specialty alloy bar to Steel of West Virginia’s existing products, which serve the original equipment manufacturer and merchant markets, according to SDI.
American Metal Market’s latest price assessment for special bar quality (SBQ) 1000-series 1-inch rounds stands at $45 per cwt ($900 per ton), up 12.5 percent from the start of the year.
SDI did not respond to American Metal Market’s request for comment.