#United States #Manufacturing #Steel Dynamics #Fort Wayne, Indiana #New Process Steel

Steel Dynamics' Strategic Acquisition of New Process Steel

In a significant move within the steel industry, Steel Dynamics, Inc. (NASDAQ/GS: STLD) recently confirmed its acquisition of the remaining 55% equity interest in New Process Steel, L.P. This strategic decision aims to bolster Steel Dynamics’ capabilities and expand its reach in the value-added manufacturing sector. New Process Steel, based in Houston, Texas, specializes in metal solutions and distribution supply-chain management, with an established reputation for high-quality standards.

Building on a Strong Relationship

Mark D. Millett, the CEO and Chairman of Steel Dynamics, emphasized the long-standing relationship they share with New Process Steel. He expressed optimism that this acquisition will enhance their exposure to value-added manufacturing opportunities while catering to the needs of their long-term flat-rolled steel customers. He remarked, "New Process has a reputation for high-quality standards and strong customer relationships. With this next step, we believe New Process will continue to have numerous opportunities for value-added manufacturing growth."

Echoing Millett’s sentiments, Richard Fant, CEO of New Process Steel, shared his enthusiasm about the acquisition, stating, "Having enjoyed a great relationship with the entire Steel Dynamics team, I believe this presents an exceptional opportunity for New Process to further grow our value-added metal solutions and supply chain strategy." Fant highlighted the shared vision of both companies in providing exceptional service and value to their customers.

Overview of New Process Steel

Founded in 1952, New Process Steel has evolved into a prominent player in North America's metal products manufacturing sector. The company, which employs approximately 1,275 individuals, has two manufacturing facilities in Mexico and four in the U.S., significantly contributing to Steel Dynamics’ operations. Notably, two of these sites are part of Steel Dynamics' Butler and Columbus Flat Roll Steel divisions.

Richard Fant has been instrumental in modernizing and diversifying New Process throughout his 25-plus years as CEO, solidifying its position as Steel Dynamics' largest flat-rolled steel customer.

Transaction Details

The acquisition agreement is set to meet customary closing conditions and requires regulatory approval. The strategic implications are extensive, as Steel Dynamics looks to incorporate New Process Steel’s capabilities into its operations, potentially creating a seamless flow of value-added manufacturing services.

About Steel Dynamics

Steel Dynamics is recognized as a leading industrial metals solutions provider, boasting facilities throughout the United States and Mexico. Known for its circular manufacturing model, the company prioritizes producing high-quality products with lower carbon emissions, utilizing recycled scrap as the core input. This acquisition is anticipated to enhance its already robust portfolio, as Steel Dynamics strives to broaden its steel fabrication capacities while also venturing into aluminum operations. Plans to supply aluminum flat rolled products—imbued with high recycled content—for the sustainable beverage can industry further exemplify its commitment to innovation and sustainability.

As one of the largest steel producers and metal recyclers in North America, Steel Dynamics is steadfast in its aim to operate with integrity, ensuring it remains the safest and most efficient producer of high-quality, diversified metal products.

Looking Forward

This acquisition aligns with Steel Dynamics' long-term vision of enhancing its operational capabilities and market reach. By leveraging the strengths of New Process Steel, Steel Dynamics is poised to face the future with confidence, addressing the growing needs of its customer base and adapting to the ever-evolving landscape of the metal industry. The company’s commitment to sustainability, backed by a strategic investment in aluminum operations, further underscores its dedication to both innovation and responsible production practices.