IN: Steel Producer to Invest $39M in New Joint-Venture with Spanish Metals Manufacturer
15 Apr, 2011
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Steel producer, Steel Dynamics Inc. (SDI) plans to establish a new joint-venture operation here with a Spanish firm, La Farga Group, creating up to 35 new jobs by 2013.
Steel Dynamics Inc., among the United States' largest producers of carbon steel and one of the largest metals recyclers, plans to invest more than $39 million to construct and equip a facility to produce wire rod from recycled copper. The La Farga Group will provide advanced manufacturing technologies to the project. The new entity will operate under the SDI La Farga, LLC name.
"This new joint-venture is the product of a great Indiana company partnering with a world leader to bring a new product to market and it's resulting in more opportunities for workers in the northeast region of our state," said Mitch Roob, Secretary of Commerce and chief executive officer of the Indiana Economic Development Corporation.
SDI, which employs more than 6,100 associates, plans to begin hiring management, production and supervisory employees for the joint-venture in the fall of 2011.
"We are proud to incorporate the advanced manufacturing technology of La Farga Group in a state-of-the-art facility that deepens our commitment to Northeast Indiana and Allen County," said Mark Millet, president and chief operating officer for Steel Dynamics, Inc.
Founded in 1993, SDI operates steel production facilities throughout Indiana and the Mid-Atlantic United States. The company shipped more than 5.3 million tons of steel in 2010, posting revenues of $6.3 billion. SDI is headquartered in Fort Wayne.
Headquartered in Barcelona, Spain, the La Farga Group traces its roots in metals production back to the mid-19th century. La Farga manufactures copper wire and tube products for a variety of industrial and consumer uses.
"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," said Oriol Guixà, chief executive officer of La Farga Group.
The Indiana Economic Development Corporation offered SDI La Farga, LLC up to $300,000 in performance-based tax credits and up to $20,000 in training grants based on the company's job creation plans. Allen County is considering additional incentives at the request of the Fort Wayne-Allen County Economic Development Alliance.
"We are excited about the new SDI La Farga facility," Allen County Commissioner Nelson Peters said. "The company's investment in Allen County, with the new facility and job growth, will have a positive economic impact on our community."
The announced formation of SDI La Farga, LLC comes just more than two months after orthopedic product and medical instrument manufacturer, Greatbatch Medical announced it would invest more than $17 million to construct an 80,000 square-foot manufacturing facility in nearby Fort Wayne, creating up to 76 new jobs by 2014.
About Steel Dynamics, Inc.
Steel Dynamics, Inc. (SDI) is one of nation's largest producers of carbon steel and one of the largest metals recycler 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 6,100 people. Additional information about the company is available at www.steeldynamics.com.
About La Farga Group
La Farga 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.
Created by Governor Mitch Daniels in 2005 to replace the former Department of Commerce, the Indiana Economic Development Corporation is governed by a 12-member board chaired by Governor Daniels. Mitch Roob serves as the chief executive officer of the IEDC. For more information about IEDC, visit www.iedc.in.gov.