Profile: Steel Dynamics, Inc. (STLD.O)

Steel Dynamics, Inc., incorporated in August 1993, is a steel producer and metals recycler. The Company has three segments: steel operations, steel fabrication operations, and metals recycling and ferrous resources operations. The Company's products in its steel segment include hot rolled, cold rolled, galvanized, Galvalume and painted sheet steel; various structural steel beams and rails; special bar quality steel, and various merchant steel products, including beams, angles, flats and channels. Its products in the metals recycling segment include ferrous and nonferrous scrap processing, scrap management, transportation, and brokerage and trading products and services. The steel fabrication segment produces steel joists and decking materials. On June 9, 2008, it acquired the remaining 75% equity interest in Recycle South, LLC. On June 24, 2008, it acquired certain assets of Sturgis Iron & Metal, an operator of scrap collection and processing locations in Indiana, Michigan and Georgia.

Steel Operations

Steel operations include the Company’s Flat Roll Division, which operates plants in Butler and Jeffersonville, Indiana; its Structural and Rail Division, which operates a plant in Columbia City, Indiana; the Company’s Engineered Bar Products Division, which operates a plant in Pittsboro, Indiana; its Roanoke Bar Division, which operates a plant in Roanoke, Virginia, and its Steel of West Virginia (SWVA) operations, in Huntington, West Virginia and Memphis, Tennessee. These operations consist of mini-mills, which produce steel from steel scrap, using electric arc furnaces, continuous casting and automated rolling mills. The Techs Industries, Inc. (The Techs), which consists of three facilities in Pittsburgh, Pennsylvania, produces a variety of galvanized sheet products using the substrate material from external suppliers and from its Flat Roll Division. Steel operations accounted for 63% of the Company’s consolidated net sales during the year ended December 31, 2008.

The Flat Roll Division sells a range of hot rolled, cold rolled and coated steel products, including a variety of specialty products, such as light gauge hot-rolled, galvanized and painted products. The Structural and Rail Division sells structural steel beams and pilings, and is also designed to produce and sell a variety of standard and premium-grade rail for the railroad industry. The Engineered Bar Products Division primarily sells special bar quality and merchant bar quality rounds, and round-cornered squares. The Roanoke Bar Division sells billets and merchant steel products, including angles, plain rounds, flats and channels. SWVA primarily sells merchant beams, channels and specialty structural steel sections. Its steel operations sell directly to end users and service centers. These products are used in industry sectors, including the automotive, construction, commercial, transportation and industrial machinery markets.

Metals Recycling and Ferrous Resource Operations

Metals Recycling and Ferrous Resource operations include, on the metals recycling side, the revenues and expenses associated with OmniSource Corporation (OmniSource), the Company’s scrap sourcing and processing operations, and the operations of Recycle South. The ferrous resource component consists of the revenues and expenses associated with its scrap substitute manufacturing facility, Iron Dynamics (IDI) and Mesabi Nugget and Mesabi Mining, direct iron reduction and mining facilities, under development. Output from these operations is used as raw materials within the Company’s steel operations or is sold or brokered to third parties.

Steel Fabrication Operations

Steel fabrication operations include the Company’s New Millennium Building Systems' (New Millennium) plants located in the Midwest and Southeastern part of the United States. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel decking used within the non-residential construction industry. New Millennium fabricates trusses, girders, steel joists and steel decking. These products are sold to the non-residential building components market.

The Company competes with U.S. Steel, AK Steel Corporation, Nucor Corporation, Gallatin Steel Company, North Star Bluescope Steel, Duferco Steel, Sharon Coatings, Wheeling Nisshin, SeverStal, Gerdau Ameristeel, Arcelor Mittal, Voest-Alpine, Nippon Steel, NKK, Tata, Moravia Steel, Akron, The Timken Company, Gerdau MacSteel, Commercial Metals, Mannstaedt, Corus, Hoesch, The David J. Joseph Co., Sims Metal Management, Ferrous Processing and Trading Co., Darlington Shredding, Canam, Quincy Joist Co., Wheeling Corrugating Co., Quincy Joist Co. and Aleris International.