Steel Dynamics, Inc.
STLD today announced plans to install a state-of-the-art
heat-treating system at its Columbia City, Indiana, Structural and Rail
Division (SRD). When operational, the system will be capable of producing up
to 350,000 tons of standard strength and head hardened plain, carbon steel
rails for North America's railroad industry.
Capital investments are estimated to be slightly less than $27 million. Site
preparation will commence immediately with construction expected to begin in
the first quarter of 2013. The company anticipates it will commission the
system before the end of 2013. Production ramp-up is expected to continue
through 2015, reaching full production of 350,000 tons in early 2016. This
expansion is expected to create nearly forty (40) new, full time jobs. The
company plans to locally-source much of the equipment, with a majority of the
required materials carrying the Made in USA manufacturing marking.
It is anticipated that the new rail capabilities will permit the Structural
and Rail Division to become North America's pre-eminent rail manufacturer for
rail quality, end straightness, and dimensional control. Unlike the company's
domestic competitors, which produce 80 foot rail on less efficient, older
technology, the company's new process will involve a modern universal mill
capable of rolling high-quality 320-foot long rails. These longer rails will
be cut to customer-required lengths or welded together into quarter-mile long
strings utilizing only four, instead of nineteen, welds, using the company's
existing state-of-the-art Continuous Rail Welding facility. By reducing the
number of welds, this technologically advanced system will significantly
reduce the potential for weld-related track issues, dramatically reduce
associated production costs, and provide customers with the quality rail
needed for 21^st Century rail systems.
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