Steel Dynamics and LaFarga Group Announce Joint Venture and $39 Million Facility
FORT WAYNE, Ind., April 15, 2011 - Steel Dynamics, Inc. (NASDAQ/GS: STLD) and LaFarga Group, headquartered in Barcelona, Spain, today jointly announced the creation of a new partnership which will operate under the SDI LaFarga, LLC name. Plans include the construction of a $39 million facility which will produce copper wire rod from recycled copper. Investigations of potential sites in Allen County, Indiana are currently underway. This new venture is expected to result in the creation of 35 new full-time management, administrative and production positions by 2013.
The venture utilizes various grades of recycled copper scrap as its primary raw material in the production of higher margin copper wire rod. As an intended provider of a portion of the copper scrap to the new venture, Steel Dynamics benefits from a new alternative domestic market for its recycled copper. Historically, a large portion of Steel Dynamics copper scrap is exported to China.
"We are proud to incorporate the advanced manufacturing technology of LaFarga Group in a state-of-the-art facility that deepens our commitment to Northeast Indiana and Allen County," said Mark Millett, President and Chief Operating Officer of Steel Dynamics, Inc. Oriol Guixa, Chief Executive Officer of LaFarga Group commented: "This joint venture represents our first expansion into the United States and we are proud to partner with Steel Dynamics, a proven leader in the metals industry."
Steel Dynamics, Inc. (SDI) is one of nation's largest producers of carbon steel and one of the largest metals recyclers with 2010 revenues of $6.3 billion. The primary sources of revenues are from the manufacture and sale of steel products; processing and sale of recycled ferrous and nonferrous metals; and to a lesser degree, fabrication and sale of steel joist and decking products. Based in Fort Wayne, Indiana, SDI employs more than 6,180 people. Additional information about the company is available at www.steeldynamics.com.
LaFarga Group, through its subsidiaries, engages in the manufacture and marketing of various types of copper products internationally. Its subsidiaries engage in the manufacture of semi-finished copper products, including copper wires, wire rods, billets, and railway products from recycled copper; production, sale, and distribution of copper pipes to plumbing, heating, air conditioning, refrigeration, and industrial markets; and manufacture of electrolytic copper rods from high grade cathodes. The company was founded in 1808 and is based in Barcelona, Spain. Additional information about the company is available at www.lfl.es.
SOURCE Steel Dynamics, Inc.
CONTACT: Richard Poinsatte, Vice President & Treasurer, +1-260-969-3500 or r.poinsatte@steeldynamics.com
Web Site: www.steeldynamics.com
