Republic Steel expands SBQ, rolling capacity

Ohio-based Republic Steel has expanded capacity at its special bar quality (SBQ) mill in Canton, Ohio, and rolling and finishing facility in Lackawanna, New York, in response to increased demand resulting from US steel tariffs.

Republic also expects to restart the 9in/10in rolling mill at its Lorain, Ohio, plant in September 2018. The restart of the plant's electric arc furnace will be dictated by order activity, the company said.

Republic recently spent more than $6mn to increase its Canton melt shop production capacity from 40,000 st/month to 75,000st/month. At Lackawanna, it has invested about $3mn to expand production capacity from 40,000 st/month to 60,000st/month and increase its finishing and inspection capacity.

"We have capacity available to supply the market now," Republic chief executive Jaime Vigil said. "We've been preparing our facilities to accommodate an increase in demand and are ready to take on new customers who want to buy from a US manufacturer."

The Lorain rolling mill has a capacity of 35,000 st/month, while the associated electric arc furnace has a melt capacity of 100,000 st/month. The rolling mill's range will be expanded down to 7.5mm, freeing up additional capacity at Lackawanna, Republic said.

The Lackawanna and Lorain expansion will increase US SBQ rolling mill capacity by 5-10pc, according to KeyBanc estimates.

Republic idled Lorain's rolling mill operations in January 2016. Lorain's electric arc furnace was idled in July 2015.

Republic Steel is a subsidiary of Mexico-based Grupo Simec.