LORAIN, Ohio (May 31, 2012) -- Republic Steel, the nation's leading provider of special bar quality (SBQ) steel, today announced that contracts have been awarded and construction is underway for the new electric arc furnace and related equipment at its Lorain, Ohio, steelmaking facility. The company expects the first heat of steel from the new facility to be tapped during the 2nd Quarter of 2013.
The expansion is designed to meet growing customer demand for the company's high quality SBQ steel, driven by the automotive, capital equipment and energy markets.
The project will bring 449 new jobs and more than $1 billion dollars in annual economic activity to Ohio. The existing 489 jobs at the Lorain facility will be retained.
"This is a very proud day for Republic Steel," said Republic President and CEO Jaime Vigil. "This expansion will help us maintain our position as the industry leader in SBQ manufacturing. The additional capacity from the new furnace will allow us more flexibility and efficiency in delivering the highly engineered products our customers require."
About the Equipment
Republic Steel's new furnace is expected to increase the company's liquid steel production by 1.2 million tons annually and will account for Lorain's first significant growth in steelmaking in the 21st century. The new equipment will supply both Republic's bloom and billet casters allowing for the production of high quality SBQ bar and coil from .295" to 6-1/2" diameter, and 6", 10-1/2", 11-5/8", 12-1/4" and 13-1/2" diameter seamless tube rounds.
Features of the new state-of-the-art electric arc furnace include: a 150-ton heat size, eccentric bottom tapping (EBT), an exchangeable upper/lower shell, a 120/135 MVA furnace transformer, current conducting arms, oxy fuel burners, carbon and lime injection systems, a temperature/sampling system, and level 1 and level 2 automation. Major contracts for the project have been awarded to SMS Concast (for EAF process equipment), Siemens (for the yard substation and related equipment, and TES (for the furnace transformer).
Republic Steel History
Republic Steel has been producing and selling SBQ steel for more than 125 years. The company makes and sells more SBQ than any other company. Republic Steel was acquired in July 2005 by Industrias CH, S.A de C.V. (ICH), a rapidly growing steel producer and processor based in Mexico City. The company's strategic alliance with ICH helps strengthen its relationships with customers expanding in Mexico and South America. Since 2005, ICH has invested more than $600 million into Republic Steel to maintain the company's position as the forefront of the SBQ industry.
About Republic Steel
Republic Steel (formerly Republic Engineered Products, Inc.) is North America's leading supplier of special bar quality (SBQ) steel, a highly engineered product used in axles, drive trains, suspensions, and other critical components of automobiles, off-highway vehicles, and industrial equipment. Republic's products include hot-rolled steel bars, cold-finished steel bars, and bottom-poured ingots. With headquarters in Canton, Ohio, and steelmaking capabilities in Canton and Lorain, Ohio, the company operates value-added rolling and finishing facilities in Canton, Lorain, and Massillon, Ohio; Lackawanna, N.Y.; Gary, Ind.; and Hamilton, Ontario. Republic employs approximately 2,200 people.