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colorado may see modern conversion of existing steel mill

10/24/2018

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The long-standing owner of a steel mill operating in Pueblo, Colorado has announced plans to convert the facility into a modern rail mill.

Evraz Rocky Mountain says it expects to spend up to $480 million on improvements to its existing steel mill in order to produce longer rails.

That conversion, say company officials, will make the Pueblo facility the most modern rail-rolling facility of its kind in North America.

The facility will either be built new from the ground up, or will come about as the result of the conversion of an existing steel mill owned by the company.

Evraz currently has three operating steel mills in metro Pueblo.

In the hope of securing the new facility, members of the Pueblo City Council have voted in favor of offering the company a $15 million incentive package.

Headquartered in Chicago, Evraz is a vertically integrated company primarily focused on coking coal and iron ore production.

It has had operations in Pueblo since 1881 and currently manufactures, among other products, seamless pipe, premium rail, and wire rod and coiled reinforcing bar.

Earlier this summer, the company announced it was committed to remaining in Pueblo for the next fifty years, based upon a long-term power agreement made with Xcel Energy.

A final decision in the Evraz Pueblo facility conversion is expected to be announced sometime next year, with construction possibly launching at the end of 2019.

In an interview with the Pueblo Chieftain newspaper, Christian Messmacher, vice president of development for Evraz, said that due to the company’s long-standing local presence, and the “unbelievably hard-working talented group of people we have in Pueblo, it just made it very natural to consider Pueblo the right place for investment.”

By Garry Boulard

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