Big River Steel Announces Partnership with Koch Metallics for Metallics Procurement
18 June 2020
Big River Steel announced that it has entered an agreement with Koch Metallics, LLC ("Koch"), a subsidiary of Koch Minerals & Trading, LLC, under which Koch will act as the exclusive agent to Big River Steel for metallics procurement. This new strategic partnership will allow Big River Steel to further improve metallics procurement by leveraging Koch's networks, capabilities and potential for providing additional services in support of Big River Steel's growth initiatives.
"Koch is a significant investor in Big River Steel, and I look forward to broadening our relationship as we jointly advance in the metallics space," said Dave Stickler, chief executive officer of Big River Steel. "Entering into this agreement will accelerate several initiatives Big River Steel has underway that provide alternatives to the ways metallics and flat-rolled steel have historically been bought and sold."
Koch is a global supplier of bulk materials, supported by its parent Koch Resources with an S&P credit rating of AA-, and world class capabilities in vessel, barge, rail, and truck transportation, as well as bulk material handling. These capabilities position Big River Steel for improved earnings by providing scale and efficiency gains, thereby reducing raw material costs.
Big River Steel currently operates a LEED (Leadership in Environmental and Energy Design) certified, technologically advanced scrap metal recycling and flat-rolled steel production facility in Osceola, Arkansas. Big River Steel is in the process of doubling its annual steel production capacity from 1.65 million tons to 3.3 million tons. The capacity expansion continues ahead of schedule and is expected to be completed prior to the end of the year, more than two months ahead of expectations.
Effective with this announcement, Martin Baker, Big River Steel's metallics procurement manager, will join the Koch team as metallics procurement and conversion manager. "Martin is a proven professional and I am fully confident that Martin joining the Koch team will lead to new and expanded relationships with forward thinking domestic and international metallics providers and steel consumers," said Stickler.
About Big River Steel
In 2017, Big River Steel began operations at its $1.3 billion scrap metal recycling and flat-rolled steel production facility. Big River Steel produces a wide-range of flat-rolled steels, including advanced automotive steels and electrical steels. Since operations began, Big River Steel has provided steel to over 225 customers in the automotive, energy, construction and agricultural industries. Based on its early success, Big River Steel began an expansion project in June 2019 to double its capacity. This $700 million expansion will enhance Big River Steel's product capabilities, further improve the efficiency of operations, and serve as the base for incremental expansion projects targeted at the most demanding steel grades. At Big River Steel, there's no talk of the status quo. True innovation leads to growth and is rebellious. To learn more visit www.bigriversteel.com.
About Koch Minerals & Trading
Koch Minerals & Trading, the parent of Koch Metallics, specializes in the innovative exchange and logistics of global commodity products and services, and the development of investments into profitable ventures and new platforms. Koch Minerals, through its subsidiaries, is engaged in dry-bulk commodities (petroleum coke, sulfur, and pulp and paper products), steel, technology and other investments. Koch Supply & Trading companies around the world trade crude oil, intermediate feedstocks, refined petroleum products, residual fuel oil, gas liquids, natural gas, liquefied natural gas, power and emission allowances, metals, and other commodities.