Steel Dynamics, Inc. and LaFarga Group, Spain, have announced the creation of a new partnership that will operate under the name SDI LaFarga, LLC.
Plans for the new partnership include construction of a $39-million facility that will produce copper wire rod from recycled copper. The venture will utilize various grades of recycled copper scrap as the primary raw material in the production of higher margin copper wire rod.
"We are proud to incorporate the advanced manufacturing technology of LaFarga Group in a state-of-the-art facility that deepens our commitment to Northeast Indiana and Allen County," said Mark Millett, President and Chief Operating Officer of Steel Dynamics, Inc.
The venture creates a new alternative domestic market for Steel Dynamics’ recycled copper. Historically, a large portion of Steel Dynamics copper scrap has been exported to China.
"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," commented Oriol Guixa, Chief Executive Officer of LaFarga Group.
Investigations of potential sites for the production facility are underway in in Allen County, Ind. The venture is expected to result in the creation of 35 new full-time management, administrative and production positions by 2013
Steel Dynamics, Inc. is one of nation's largest producers of carbon steel and one of the largest metals recyclers with 2010 revenues of $6.3 billion. 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, Ind., the company employs more than 6,180 people.
LaFarga Group, through its subsidiaries, manufactures and markets 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.