Big River to double Arkansas mill capacity

US steel producer Big River Steel will double hot-rolled steel production capacity at its Osceola, Arkansas, mill in order to meet expected higher electrical steel demand.

Big River will double its existing capacity to 3.3mn st/yr after completing the $1.2bn expansion. Major construction is expected to begin later this year and will last about 24 months.

The expansion will increase Big River's ability to produce higher grades of electrical steel. The producer expects demand in that segment to grow amid continued focus on energy efficiency and more sales of hybrid and electric cars. Most electric motors are now produced overseas, with Ohio-based AK Steel the only other major producer in the US.

Big River said it is also considering installing a coating line focused on automotive applications, potentially in cooperation with another steel industry player. It is also looking at opportunities to supply grain-oriented steel products.

Big River began full operations in December 2016 at the greenfield mini-mill. The mill consumes as much as 2mn st/yr of metallics, including over 100,000st/month of scrap and over 50,000st of pig iron, HBI and DRI. A majority of scrap arrives at the Mississippi river mill by barge, with around a quarter by rail and a smaller share by truck.

The company has eyed expansion even before US steel tariffs enacted this year motivated other producers to increase output. In addition to today's announcement, Big River in April optioned land in Brownsville, Texas, for a potential second mill.