Summary:“Koch Minerals & Trading (KM&T) joins investment forces with TPG Rise Climate and Global Principal Partners to fund Hybar, a pioneering venture set to construct a cutting-edge and energy-efficient scrap metal recycling steel rebar mill in Arkansas. The $700 million financing will not only facilitate mill construction but also fund operational setup, a solar power plant, and more. This strategic investment aligns KM&T's capabilities with Hybar's vision for innovative market-driven projects.”Koch Minerals & Trading (KM&T) has made a notable investment stride, actively participating in a substantial $700 million debt and equity financing round for Hybar. This newly formed company has set its sights on a transformative mission – the construction, establishment, and operation of a technologically advanced and energy-efficient scrap metal recycling steel rebar mill in Arkansas.Joining hands with TPG Rise Climate and Global Principal Partners, KM&T is a key contributor to this monumental investment. Out of the $700 million funding, an impressive $470 million will be directed towards mill construction. The remaining funds will cover start-up and operational expenses, a solar power plant, a port facility, and certain debt service costs during the construction phase.Key Figures:The mill's construction is projected to span 22 months, taking shape on a sprawling 1,300-acre site that enjoys direct access to barge, rail, and truck transportation options.Hybar's ambitious plans entail the annual production of 630,000 tons of rebar, with a workforce of approximately 154 employees, amounting to 4,090 tons per employee.Koch's Motivation: Vance Holtzman, Senior Vice President of KM&T Investments, underscores the excitement surrounding this endeavor. He emphasizes the partnership as a strategic alignment of KM&T's capabilities with Hybar and TPG teams' proven track record in pioneering projects that resonate with market needs. Holtzman envisions this collaboration as a mutually beneficial journey.The Hybar partnership follows KM&T's previous investment triumph with Big River Steel, a venture that eventually culminated in U.S. Steel's full acquisition. Additionally, KM&T subsidiary Koch Metallics is set to play an integral role, offering metallics procurement services to Hybar and extending risk management services to Hybar's clientele.Hybar's Perspective: Hybar's CEO, Dave Stickler, proudly acknowledges the backing of Koch Minerals & Trading. He places this support within a context of investors recognizing the remarkable potential of Hybar's innovative scrap metal recycling steel rebar technology.Conclusion: A Dynamic Partnership for Innovation and SustainabilityKoch Minerals & Trading's strategic investment in Hybar underscores a shared commitment to innovation, sustainability, and market-driven progress. This partnership combines KM&T's expertise with Hybar's visionary rebar technology, symbolizing a dynamic fusion of capabilities that hold the promise of reshaping the steel industry.
Summary:“Koch Minerals & Trading (KM&T) joins investment forces with TPG Rise Climate and Global Principal Partners to fund Hybar, a pioneering venture set to construct a cutting-edge and energy-efficient scrap metal recycling steel rebar mill in Arkansas. The $700 million financing will not only facilitate mill construction but also fund operational setup, a solar power plant, and more. This strategic investment aligns KM&T's capabilities with Hybar's vision for innovative market-driven projects.”Koch Minerals & Trading (KM&T) has made a notable investment stride, actively participating in a substantial $700 million debt and equity financing round for Hybar. This newly formed company has set its sights on a transformative mission – the construction, establishment, and operation of a technologically advanced and energy-efficient scrap metal recycling steel rebar mill in Arkansas.Joining hands with TPG Rise Climate and Global Principal Partners, KM&T is a key contributor to this monumental investment. Out of the $700 million funding, an impressive $470 million will be directed towards mill construction. The remaining funds will cover start-up and operational expenses, a solar power plant, a port facility, and certain debt service costs during the construction phase.Key Figures:The mill's construction is projected to span 22 months, taking shape on a sprawling 1,300-acre site that enjoys direct access to barge, rail, and truck transportation options.Hybar's ambitious plans entail the annual production of 630,000 tons of rebar, with a workforce of approximately 154 employees, amounting to 4,090 tons per employee.Koch's Motivation: Vance Holtzman, Senior Vice President of KM&T Investments, underscores the excitement surrounding this endeavor. He emphasizes the partnership as a strategic alignment of KM&T's capabilities with Hybar and TPG teams' proven track record in pioneering projects that resonate with market needs. Holtzman envisions this collaboration as a mutually beneficial journey.The Hybar partnership follows KM&T's previous investment triumph with Big River Steel, a venture that eventually culminated in U.S. Steel's full acquisition. Additionally, KM&T subsidiary Koch Metallics is set to play an integral role, offering metallics procurement services to Hybar and extending risk management services to Hybar's clientele.Hybar's Perspective: Hybar's CEO, Dave Stickler, proudly acknowledges the backing of Koch Minerals & Trading. He places this support within a context of investors recognizing the remarkable potential of Hybar's innovative scrap metal recycling steel rebar technology.Conclusion: A Dynamic Partnership for Innovation and SustainabilityKoch Minerals & Trading's strategic investment in Hybar underscores a shared commitment to innovation, sustainability, and market-driven progress. This partnership combines KM&T's expertise with Hybar's visionary rebar technology, symbolizing a dynamic fusion of capabilities that hold the promise of reshaping the steel industry.
