Fort Wayne Indiana headquartered steel maker Steel Dynamics Inc’s Board of Directors has authorized the company to construct and operate a 650,000 tonne low carbon, recycled aluminum flat rolled mill, with two supporting satellite recycled aluminum slab centers. The capital investment is estimated to be USD 2.2 billion for the three facilities, and commercial production is planned to begin in the first quarter 2025. The planned USD 1.9 billion aluminum flat rolled mill will be located in the Southeastern United States, with an annual production capacity of 650,000 tonnes of finished products, serving the sustainable beverage packaging, automotive, and common alloy industrial sectors. The product offering will be supported by various value-added finishing lines, including CASH (continuous annealing solutions heat treating) lines, continuous coating, and various slitting and packaging operations. The rolling mill is currently expected to begin operations in the first quarter 2025. The company will own over 94% of the rolling mill facility through a joint venture arrangement with Unity Aluminum Inc, whose employees provide significant aluminum industry operating expertise to the project, complementing the company’s own proven extensive construction and operating talent.At full capacity, the aluminum rolling mill will require approximately 900,000 tonnes of annual aluminum slab supply. The rolling mill is expected to have the capacity to supply approximately 50% of its recycled aluminum slab requirements onsite, with the remaining amount to be provided by the construction and operation of two additional satellite recycled aluminum slab centers, one to be located in the Southwestern United States and the other in North Central Mexico. The satellite slab centers will benefit from abundant regional aluminum scrap supply and cost-effective operations. The two facilities are expected to cost approximately USD 350 million in aggregate, with the Mexico facility expected to begin operations in 2024 and the US facility by the end of 2025. The company will own 100% of the satellite facilities.The state of the art aluminum flat rolled mill will utilize a significant amount of aluminum scrap, and as such is also a complementary extension of the company’s metals recycling platform, which is the largest nonferrous metals recycler in North America. The company estimates the project will generate between USD 650-700 million of annual EBITDA on a through-cycle basis. The project will be funded with available cash and cash flow from operations, and the company plans to maintain its policy of strong shareholder distributions and investment grade credit ratings.The North American flat rolled aluminum industry has a substantial and growing supply deficit estimated at over 2.0 million tonnes, based largely on increasing demand from the automotive and sustainable beverage can industries. The lack of aluminum flat rolled availability has impacted automotive producers’ ability to secure supply. The supply deficit is currently being addressed through imports of higher-cost aluminum flat rolled products, which exceeded 25% of North American consumption in 2021.Steel Dynamics is one of the largest US steel producers and metals recyclers in the United States based on estimated annual steelmaking and metals recycling capability, with facilities located throughout the United States, and in Mexico. Steel Dynamics produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.