Hybar announced that it has raised $1.1 billion to build a second technologically advanced and environmentally sustainable scrap metal recycling steel rebar mill in northeast Arkansas.
The new expansion mill will be built immediately next to Hybar’s existing rebar mill, which was commissioned nine months ago after a successful construction process.
Hybar said its existing mill has already achieved industry-leading product quality and environmental sustainability standards. The existing facility also began generating positive cash flow in its fourth month of operation.
Based on this early performance, Hybar decided to double its rebar production capacity. The expansion mill is expected to increase Hybar’s total rebar production capacity to about 1.3 million tons annually, representing just under 13% of the domestic market.
Construction of the expansion mill is expected to take about 24 months. Like Hybar’s existing facility, the new mill will be supplied by SMS group, a major technology supplier to the global steel industry.
Hybar has built its operations around access to three direct modes of transportation: barge, rail, and truck. This logistics network enables the company to serve customers across the United States.
The company’s rebar is being used in data center projects, medical campus expansions, energy infrastructure buildouts, and road, bridge, and tunnel repair and upgrades. Hybar plans to continue expanding in these markets with the new mill.
Hybar also has a special rate power contract with Entergy Arkansas, which has one of the lowest-carbon electric generation portfolios in the United States.
The company is further supported by its sister company, Green & Clean Power, which operates the largest industrial behind-the-meter solar and battery storage facility in the U.S. The facility is located next to Hybar and feeds power directly into its operations.
After receiving final certifications and completing harmonic tests later this summer, Hybar expects that, when the sun is shining, it will be the only steel producer in North America capable of producing steel using 100% renewable energy.
Following the expansion, Hybar expects to produce close to 5,000 tons of rebar per year per employee, which the company believes would give it the most productive labor force in the global steel industry.
Goldman Sachs and TPG Capital served as joint lead bookrunners for a Rule 144A notes offering. Truist Securities and Barclays acted as co-managers. Goldman Sachs, Truist, Barclays, and Crews & Associates also acted as underwriters for a municipal bond offering.
Hybar and its related entities are owned by TPG Rise Climate, KM&T Hybar Holdings, Global Principal Partners, and Quanta Services.
KEY QUOTES:
“We have best-in-class technology, a great site with three modes of transportation, and outstanding highly motivated employees. But what truly differentiates Hybar is our ‘can-do, get-it-done’ culture. Empowering employees, stripping away bureaucracy, pushing decision making down to the mill floor, and constantly looking for better, faster, more sustainable ways to make steel are the keys to Hybar’s success.”
Dave Stickler, CEO of Hybar
“Hybar is a true success story, building state-of-the-art facilities and producing sustainable steels using scrap metal in northeastern Arkansas. Hybar is continuing to invest in Arkansas thanks to our state’s infrastructure, workforce, and favorable business climate. We are proud of this growing partnership and look forward to many more years of Hybar’s success in our state.”
Clint O’Neal, Executive Director of the Arkansas Economic Development Commission
