Feature Illustration (above): A chart flow of the steel production line. Courtesy: SDI.
Posted: 10-25-2019
by Adolfo Pesquera
Sinton (San Patricio County) — Steel Dynamics Inc. released its 3rd Quarter report earlier this month and in the Outlook statement mentioned its excitement over the pending construction in 2020 of the $1.7 billion steel plant to be located just north of Sinton.
Mark D. Millett, SDI’s president and CEO, said, “In combination with our existing and newly announced expansion initiatives, there are firm drivers in place for our continued growth. We are excited about our Sinton, Texas flat roll steel mill project, and the associated long-term value creation it will bring through geographic and value-added product diversification.
“This facility is designed to have product size and quality capabilities beyond that of existing electric-arc-furnace flat roll steel producers, competing even more effectively with the integrated steel model and foreign competition. We have targeted regional markets that represent over 27 million tons of relevant flat roll steel consumption, which includes the growing Mexican flat roll steel market. This facility is located and designed to have a meaningful competitive advantage in those regions.”
Sinton was in competition with several other cities in the United States to the plant location. In March, the Commissioners Court amended its tax abatement offer at SDI’s request. The Fort Wayne, Indiana-based steel manufacturer announced its decision to build on a large agriculture tract north of town, about 2,500 acres, on July 22.
The announcement was timed with an agreement by SDI to award SMS group the order to supply a complete steel production line–from the steelworks to the CSP (Compact Strip Production) plant, and from the cold rolling mill to the galvanizing line. SMS group is based in Dusseldorf, Germany.
The plant is to have an annual capacity of 3 million short tons of steel, with about half its production going to Mexico. It will provide products not yet available in the Southwest, according to SDI.
The plant is scheduled to be operational by mid-2021 and will initially employ about 600 full-time workers. SDI began talks this past summer with the Sinton community about the logistics of relocating many of its workers. Sinton, the county seat, has a population of about 5,600, but its population has been in decline, having peaked at around 6,000 in 1980.
The Corpus Christi Regional Economic Development Corporation assisted in locating a suitable site for SDI. The land near Sinton was considered ideal because it already had or was near essential infrastructure, including two rail lines, highways, electric power and water. And by way of U.S. Highway 181, it is about 25 miles from the Port of Corpus Christi.
adolfo@virtualbx.com
