Steel Dynamics to Begin Shipping Standard Rail to Major Railroads
FORT WAYNE, Ind., Feb. 22 /PRNewswire-FirstCall/ -- Steel Dynamics, Inc. (Nasdaq: STLD) today announced the company has begun commercial production of Standard Strength rails that meet all current AREMA specifications. Our Structural & Rail Division at Columbia City, Indiana, produces this rail in lengths up to 240 feet and is capable of producing 300,000 tons of rail per year.
The company also announced that our Standard Strength rail, after extensive internal research, development and evaluation, has been tested and qualified by the first of the seven North American Class I railroads that are potential customers. Shipments are expected to begin in the second quarter. Evaluations by other Class I railroads are underway and are expected to result in additional approvals in the near future.
To secure this certification, samples of the rail produced at our rail mill have undergone rigorous evaluations by independent testing laboratories to certify adherence to the AREMA specifications. AREMA (the American Railway Engineering and Maintenance-of-Way Association) is the professional organization that sets standards for design, construction, and maintenance of America's railroad infrastructure.
Leveraging the Columbia City mill's ability to produce 240-foot-long rail, Steel Dynamics employs its technologically advanced on-site rail welding plant to weld rails together into continuously welded rail (CWR) strings 1,600 feet in length. This winter we completed major modifications to the rail-welding plant that allow it to operate year-around on an uninterrupted basis. Recently, the rail welding plant has seen a dramatic increase in orders for welded rail.
Dick Teets, President and COO of SDI's Steel Operations, stated, "We believe the renewed emphasis on both freight and passenger rail transportation in North America provides a unique growth opportunity for Steel Dynamics. We expect the investments we have made, our cost advantage, and our focus on delivering differentiated, quality products will allow SDI to grow quickly to become a major provider of rail to all of the North American railroad industry."
Forward-Looking Statements
This press release contains some predictive statements about future events, including statements related the development and production of new products, the acceptance and purchase of these products by new customers to the company, and the ultimate success of these products in the North American marketplace. These statements are intended to be made as "forward-looking," subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.
We refer you to SDI's detailed explanation of various factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K and in other reports which we from time to time file with the Securities and Exchange Commission, available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com.
Forward-looking or predictive statements we make are based on our knowledge of our businesses and the environment in which they operate as of the date on which the statements were made. Due to these risks and uncertainties, as well as matters beyond our control which can affect forward-looking statements, you are cautioned not to place undue reliance on these predictive statements, which speak only as of the date of this press release. We undertake no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Steel Dynamics, Inc.
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