en.Wedoany.com Reported - U.S. steel producer Hybar LLC (headquartered in Osceola, Arkansas) has raised $1.1 billion to build a second scrap-fed electric arc furnace (EAF) rebar mill adjacent to its existing site. The project has broken ground, and the new facility will be located next to the company's current rebar mill in northeastern Arkansas.
Hybar's existing mill, which came online last year, was completed smoothly. The company stated that the mill has achieved "industry-leading product quality and environmental sustainability standards" and generated positive cash flow in its fourth month of operation. Encouraged by this strong startup performance, Hybar decided to double its rebar capacity, designating the second facility as an "expansion mill." Upon completion, Hybar's annual rebar capacity will increase to approximately 1.3 million tons, accounting for about 13% of total U.S. market production.
The construction of the expansion mill is expected to take about two years. Like the first EAF, the equipment for the second EAF will be supplied by Germany's SMS Group GmbH. Hybar serves customers across the U.S. through three direct shipping modes: barge, rail, and truck. Its rebar products are used in data center projects, medical campus expansions, energy infrastructure construction, and the repair and upgrade of roads, bridges, tunnels, and other infrastructure.
The company has signed a special electricity rate contract with Entergy Arkansas, which has one of the lowest carbon emission power generation portfolios in the U.S. Hybar's sister company, Green & Clean Power LLC, operates a large-scale behind-the-meter solar and battery storage facility near the mill, supplying electricity directly to Hybar's production. After final certification and testing are completed in late summer, Hybar is expected to become the only steel producer in North America to operate entirely on renewable energy during peak sunlight hours.
After the expansion, Hybar anticipates producing nearly 5,000 tons of rebar per employee annually, making it the most efficient workforce in the global steel industry. For the expansion financing, Hybar partnered with Goldman Sachs & Co. LLC and TPG Capital BD LLC as joint lead bookrunners for the note issuance; Truist Securities and Barclays served as co-managers; and Goldman Sachs, Truist, Barclays, and Crews & Associates jointly acted as underwriters for the municipal bond issuance. Hybar and its related entities—Green & Clean Holdings LLC (parent company), Green & Clean Power LLC (solar and battery storage), and Green & Clean Terminals LLC (river port)—are jointly owned by the company's management team, funds affiliated with New York-based Tarrant Capital, a subsidiary of Koch Inc., and Quanta Services Inc.
