Steel Dynamics, Kobe Steel to build plant

By Staff -- Purchasing, 5/3/2007

Steel Dynamics Inc. of Fort Wayne, Ind., which produces flat-rolled steel products, has agreed to a new initiative with Kobe Steel to build and operate a $235 million iron-ore processing plant in Minnesota. The proposed Mesabi Nugget plant in the Hoyt Lakes region hinges on getting financing, including economic development assistance from the state government. Steel Dynamics will have a majority stake and build and operate the facility while Japan-based Kobe Steel will provide technical and engineering services, technology license and equipment. Steel Dynamics anticipates initial annual production of 500,000 tons of iron nuggets at the plant.