Steel Dynamics, Inc.
TypePublic company
IndustryMetals
Founded1993 (1993)
HeadquartersFort Wayne, Indiana, U.S.
Key people
Mark D. Millett (President & CEO)
Theresa E. Wagler (CFO)
ProductsSteel
Production output
9,620,207 tons of steel (2020)
RevenueDecrease US$9.601 billion (2020)
Decrease US$550 million (2020)
Total assetsIncrease US$9.265 billion (2020)
Total equityIncrease US$4.189 billion (2020)
Number of employees
9,625 (2020)
Websitewww.steeldynamics.com
Footnotes / references
Financials as of December 31, 2020[1]

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

With a production capacity of 13 million tons of steel, the company is the third largest producer of carbon steel products in the United States. It is among the most profitable American steel companies in terms of profit margins and operating margin per ton.[1]

Based on its 2021 revenue, the company ranked 196th on the 2022 edition of 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, a scrap metal processor and trader.[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, production for the Sinton,TX facility commenced. It is a 2,400-acre complex which is supposed to also house several other businesses who work with SDI in other cities. 3,000 jobs should be created when complete.[11]

Controversies

Environmental damage

In 2021, the company agreed to pay $475,000 and spend $3 million to upgrade air pollution control equipment to reduce air emissions at its facilities in Butler, Indiana to after allegations by the United States Environmental Protection Agency that the company was violating the Clean Air Act of 1963.[12]

Price-fixing allegations

The company was accused in a lawsuit of participating in a conspiracy with other steel manufacturers to restrict steel production in 2008. In October 2016, the company settled the case, agreeing to pay $4.6 million.[13]

See also

Further reading

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

References

  1. 1 2 "Steel Dynamics Inc. 2020 Form 10-K Annual Report". U.S. Securities and Exchange Commission.
  2. ↑ "Fortune 500: Steel Dynamics". Fortune. Retrieved July 15, 2022.
  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. ↑ "1.7-billion-dollar steel dynamics plant in Sinton set to be up and running by Fall 2021". 10 December 2020.
  12. ↑ "EPA Settlement with Steel Dynamics, Inc. Will Reduce Air Pollution in Butler, Indiana" (Press release). United States Environmental Protection Agency. March 2, 2021.
  13. ↑ "Final Piece Of $194M Steel Price-Fix Settlement Clears Hurdle" (Press release). PR Newswire. October 18, 2016.
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