A plant in the Vigo County Industrial Park that employs about 220 workers is getting a new owner.
Companhia Siderurgica Nacional LLC is being sold to Steel Dynamics, according to a news release from the Fort Wayne-based purchaser.
Steel Dynamics has agreed to acquire the plant, originally Heartland Steel, from parent company CSN Steel for $400,000, including $60 million in working capital.
The plant produces various types of higher-margin flat roll steel by further processing hot roll coils. It can produce one million tons of cold roll steel, with galvanizing capacity of 360,000 tons, according to the news release.
Corporate officials from the two parties have approved the cash transaction, subject to customary conditions and regulatory approval. Steel Dynamics said it expects the deal to be completed by Sept. 30.
The CSN plant has been operated at low utilization, focusing on galvanized products, and Steel Dynamics plans to use it at full capacity. The company says the plant’s proximity to other Steel Dynamics flat roll operations and fabrication facilities provides opportunities for more efficiency in the supply chain and customer service network.
“The acquisition of Heartland represents a step in the continuation of our growth strategy,” said Mark D. Millett, chief executive officer of Steel Dynamics. “We look forward to welcoming the Heartland employees and customers into the Steel Dynamics family, and working with them to drive future growth and success.”
Steve Witt, president of Terre Haute Economic Development Corp. said the local plant will be in good hands under Steel Dynamics.
Since its founding in the 1990s, the company has grown by leaps and bounds to become the fifth-largest steel manufacturer in the U.S., Witt said.
“SDI is also a major player in several steel-related industries as well. Our local CSN facility appears to be a great addition to the SDI portfolio,” he said. “This is great news for our community and for our Vigo County Industrial Park-based facility, in particular. SDI has the resources and the expertise to take our local facility to the next level.”