Fort Wayne's Steel Dynamics buys Mississippi mill, reports higher profits

Located in northeastern Mississippi, Severstal Columbus is one of the newest and most technologically advanced mini-mills in North America, Steel Dynamics said. It will purchase Columbus for $1.625 billion in cash.

The acquisition expands Steel Dynamics’ annual steel shipping capacity to 11 million tons, representing an approximate 40 percent increase, the company said.

Based in Fort Wayne, Steel Dynamics operates a steel mill in DeKalb County, along with operations of its OmniSource and New Millennium Building Systems divisions.

“The acquisition of Columbus represents a significant step in the continuation of our growth strategy,” said Steel Dynamics Chief Executive Officer Mark Millett of Auburn. “It leverages our core strengths and at the same time fulfills our initiatives to further increase value-added product and market diversification. We enthusiastically look forward to welcoming the Columbus employees and customers into the Steel Dynamics family and working with them to drive future growth and success.”

Columbus has 645 employees and an estimated annual hot-roll production capacity of 3.4 million tons for customers primarily in the distributor, construction, automotive and pipe and tube markets. Steel Dynamics said Columbus is strategically located to serve high-growth markets in the Southern United States and Mexico, providing geographic diversification and growth opportunities.

Commenting on the company’s second-quarter results, Millett said, “All of our reporting segments achieved meaningfully higher profitability compared to the sequential quarter, improving beyond the negative inclement weather impact on the first quarter. We are optimistic heading into the second half of 2014, and so are our customers.”