President Trump is heralding Steel Dynamics’ decision to open a new plant as a sign that steel jobs are returning to the U.S. following his decision to impose double-digit tariffs on imports of the metal.
The Fort Wayne, Ind.-based company said earlier this week it would invest as much as $1.8 billion to construct a new flat-rolled steel mill in the southwestern U.S., with the exact location “subject to state and local government infrastructure and incentive support.” The project — expected to begin in 2020 — would create 600 new “well-paying” jobs, the Fort Wayne, Ind.-based company said.
“Steel JOBS are coming back to America, just like I predicted,” Trump wrote in a post on Twitter. “Congratulations to Steel Dynamics!”
Trump’s 25 percent tariffs on steel imports — which were imposed alongside a 10 percent levy on aluminum imports on most countries at the start of May — helped drive a record $531 million in operating income at Steel Dynamics’ signature business in the three months through September.
Steel Dynamics announced that it will build a brand new 3 million ton steel mill in the Southwest that will create 600 good-paying U.S. JOBS. Steel JOBS are coming back to America, just like I predicted. Congratulations to Steel Dynamics!
— Donald J. Trump (@realDonaldTrump) November 28, 2018
Alongside the levies on raw materials, Trump imposed tariffs on $250 billion in Chinese products and has threatened to hike duties on $200 billion of them from 10 percent to 25 percent. He has also proposed levies on $267 billion more in shipments.
While the tariffs have benefited the steel and aluminum sectors, most other industries are suffering from the additional costs and plan to raise consumer prices to curb the impact.
Overall, net income at Steel Dynamics rose 159 percent in the quarter, and the company is on pace to double its full-year profits.
The new plant is “a culmination of our intentional focus to cost-effectively further serve the customers” in a growing regional market for flat-rolled steel, Chief Executive Officer Mark Millett said. “Our unique operating culture, coupled with our considerable experience in successfully constructing and operating cost-effective and highly profitable steel mills, positions us well to execute this greenfield opportunity.”
