Steel Dynamics

Steel Dynamics, Inc., sometimes abbreviated as "SDI", is a steel producer based in Fort Wayne, Indiana.

Steel Dynamics, Inc.
TypePublic company
NASDAQ: STLD
S&P 400 component
IndustryMetals
Founded1993 (1993)
HeadquartersFort Wayne, Indiana, United States
Key people
 Mark Millett (President & CEO)
Keith Busse (Chairman)
ProductsSteel
Production output
10,898,744 tons of steel (2019)
Revenue $10.464 billion (2019)
$677 million (2019)
Total assets $8.275 billion (2019)
Total equity $3.921 billion (2019)
Number of employees
8,385 (2019)
Websitewww.steeldynamics.com
Footnotes / references
[1]

With a production capacity of 13 million tons, Steel Dynamics is the 3rd largest producer of carbon steel products in the United States. SDI is among the most profitable American steel companies in terms of profit margins and operating profit per ton.[1]

The company is ranked 264th on the Fortune 500.[2]

History

Steel Dynamics was founded in 1993 by three former executives of Nucor with $370 million in funding. It began production at its $275 million Butler, Indiana, flat roll mill in 1996 and reported its first annual profit in 1997.

During the early 2000s recession, the company offered many incentive programs for employees to cut costs and improve standards and outperformed most other steel manufacturers.[3]

In 2007, the company acquired The Techs, three hot-dip galvanization plants in Pittsburgh that coat flat-rolled steel,[4] and OmniSource Corporation.[5]

In 2014, the company acquired Severstal Columbus for $1.625 billion. The acquisition increased the company's production capacity to 11 million tons.[6]

In 2016, the company acquired Vulcan Threaded Products for $126 million.[7]

In 2016, the company began construction of a $100 million facility in Columbus, Mississippi.[8]

In 2017, the company began a $28 million expansion of its Roanoke Bar Division.[9]

In 2017, the company began a $75 million expansion of its Structural and Rail Division.[10]

In 2018, the company acquired the former Kentucky Electric Steel plant in Coalton, Kentucky.

In 2020, Steel Dynamics is reported to supply Tesla's Cybertruck steel from its Sinton plant in Texas. "The 1.7-billion-dollar steel dynamics plant under construction in Sinton is supposed to be up and running by the Fall of 2021. Not only is it going to provide hundreds of good paying jobs but it’s also going to supply the steel used in making Tesla’s Cybertruck. Right now, Tesla is building a factory in Austin that will produce the Cybertruck" Said San Patricio County Judge David Krebs. [11]

Controversies

Price-fixing allegations

Along with other steel producers, the company was a defendant in a price-fixing lawsuit.[12] The case was settled and Steel Dynamics agreed to pay $4.6 million in 2016.[13]

See also

Further reading
  • Richard Sarver - Taking the Heat - A Steelworker's Story (2012)

References
  1. "Steel Dynamics Inc. 2019 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. "Fortune 500: Steel Dynamics". Fortune.
  3. Cable, Josh (December 20, 2011). "Steel Dynamics's Dynamic Duo". IndustryWeek.
  4. "Steel Dynamics Agrees to Acquire The Techs" (Press release). Steel Dynamics. July 2, 2007.
  5. "Steel Dynamics to Acquire OmniSource Corporation" (Press release). Steel Dynamics. October 1, 2007.
  6. "Steel Dynamics Completes Acquisition of Severstal Columbus" (Press release). PR Newswire. September 16, 2014.
  7. "Steel Dynamics to Acquire Vulcan Threaded Products to Expand SBQ Finishing Capabilities" (Press release). PRNewswire. June 30, 2016.
  8. Sheffield, Michael (January 25, 2016). "Steel Dynamics breaks ground on new $100 million Mississippi facility". American City Business Journals.
  9. "Steel Dynamics Roanoke Bar Division Diversifies and Expands Product Offerings with New Reheating Furnace and Finishing Equipment Purchase from SMS Group" (Press release). PR Newswire. February 2, 2017.
  10. "Steel Dynamics Structural and Rail Division Increases Production Capability and Diversifies Product Offerings" (Press release). PR Newswire. July 5, 2017.
  11. https://www.kiiitv.com/article/news/local/17-billion-dollar-steel-dynamics-plant-in-sinton-set-to-be-up-and-running-by-fall-2021/503-4f7e7421-5940-4dbd-9502-2dc0081d75f3
  12. "Three Steel Companies Hold their Ground in Price-Fixing Lawsuit". US Glass News Network. November 30, 2015.
  13. Jessica Corso (November 3, 2016). "Final Piece Of $194M Steel Price-Fix Settlement Clears Hurdle". Law360.
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