Steel Dynamics Inc. officials today announced plans to buy a Mississippi mini-mill for $1.625 billion.
The acquisition of Severstal Columbus LLC, which will be funded with cash and debt, will significantly expand Fort Wayne-based SDI's annual steel production capacity by 40 percent to 11 million tons.
With the purchase, SDI gains a presence in the South, which would make it easier to supply growing manufacturing operations in the South and in Mexico, company officials said.
The Mississippi operation, which is one of the newest and most technically advanced mini-mills in North America, will broaden SDI's product offerings.
Mark Millett, SDI's CEO, said he looks forward to welcoming the 645 new employees to the company. The deal is expected to close by the end of the year, pending regulatory approval.
"The acquisition of Columbus represents a significant step in the continuation of our growth strategy," he said in a statement.
For more on this story, see Tuesday's print edition of The Journal Gazette or go to www.journalgazette.net after 3 a.m. Tuesday.