Press release from Steel Dynamics, Inc.:
Steel Dynamics to Supply Welded Rail for New England Project
(December 22, 2010 – PRNewswire) – Steel Dynamics, Inc. (Nasdaq: STLD) today announced that its Structural and Rail Division at Columbia City, Indiana, is supplying 28,500 net tons of Continuous Welded Rail (CWR) to its strategic rail distributor, Pittsburgh-based L.B. Foster Company, for installation on the New England Central Railroad (NECR), an operating subsidiary of RailAmerica, Inc.
L.B. Foster will be delivering the new rail to Vermont for use in New England Central’s “Vermonter” project. Funding of the project, a part of the Federal Railroad Administration’s High-Speed Intercity Passenger Rail Program, was awarded to the State of Vermont from the American Recovery and Reinvestment Act.
To be completed by mid-2012, the project is to improve Vermont’s state-supported Amtrak service in this region on a continuing basis. The new welded rail will improve the speed of intercity passenger service and add capacity for freight carloads. Steel Dynamics is supplying rail to upgrade approximately 140 miles of NECR track.
According to Paul Kotsenas, SDI’s Manager of Rail and Special Products, “Steel Dynamics’ role is to provide the highest-quality standard rail possible in the longest lengths possible. SDI is producing the 115RE Standard Strength rail in 240-foot lengths and welding these rail sections into 1600-foot continuous strings at our weld plant adjacent to the rail mill.”
The first of the trainloads of welded rail are being loaded onto L.B. Foster’s specially equipped CWR trains. The completed order will incorporate eighteen trainload shipments of welded rail to be delivered by mid-2011 for installation at various locations throughout Vermont.
L.B. Foster manages the trackside off-loading of the rail. “The convenience of our own weld train and our jobsite-management capabilities help to expedite deliveries and minimize off-loading time along this busy route,” said Greg Lippard, Vice President, L.B. Foster Rail Sales.
To continue to support the world rail community, Steel Dynamics recently completed a $1.2 million upgrade of its Rail Testing and Inspection unit. SDI also is embarking on a $17.5 million capital improvement project to streamline processing in the Rail Mill Finishing area.
L.B. Foster Company (Nasdaq: FSTR) provides materials and services for the construction and maintenance of transportation, utility, and other infrastructure projects. It is based in Pittsburgh, PA.
RailAmerica, Inc. (NYSE: RA) owns and operates short line and regional freight railroads in North America, operating a portfolio of 40 individual railroads with approximately 7,300 miles of track in 27 U.S. states and three Canadian provinces.
This press release contains some predictive statements about future events, including statements related to conditions in and future growth of the domestic and global rail industry, the demand for our rail products, and the means, public or private, of funding rail expansion or replacement projects. These statements are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.
Factors that could cause such predictive statements to turn out other than as anticipated or predicted include, among others: the effects of prolonged or deepening recession on demand; general or specific construction sector issues, resulting from economic, regulatory or other factors; the impact of price competition; difficulties in integrating acquired assets; increases in manufacturing or resource costs; occurrence of unanticipated equipment failures and plant outages; labor unrest; and the effect of the elements on production or consumption.
More specifically, we refer you to SDI’s detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K, in our quarterly reports on Form 10-Q or in other reports which we from time to time file with the Securities and Exchange Commission, available publicly on the SEC Web site, www.sec.gov, and on the Steel Dynamics Web site, www.steeldynamics.com.
Forward-looking or predictive statements we make are based upon information and assumptions concerning our businesses and the environments in which they operate, which we consider reasonable as of the date on which these statements are made. Due to the foregoing risks and uncertainties however, as well as matters beyond our control which can affect forward-looking statements, you are cautioned not to place undue reliance on these predictive statements, which speak only as of the date of this press release. We undertake no duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
SOURCE Steel Dynamics, Inc.
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