open_in_newOriginal article
Pacific Steel selects Danieli as EAF equipment supplier

Pacific Steel selects Danieli as EAF equipment supplier

  • a day ago
  • recyclingtoday.com
  • Keywords: Danieli selected as supplier, EAF equipment

Pacific Steel Group has chosen Danieli & C. S.p.A. to supply equipment for its new electric arc furnace (EAF) micromill in Mojave, California. The facility will produce up to 380,000 tons of steel rebar annually using recycled materials and solar energy, supported by advanced technologies like Danieli's Q-Sym and Q3-Dyms systems. The project, valued at $350 million, is expected to create 400 jobs and begin operations in early 2027.

Meta Products

Estimated market influence

Pacific Steel Group

Positive
Analyst rating: N/A

Selected Danieli for EAF equipment, which is a significant investment in sustainable steel production.

Danieli & C. S.p.A.

Positive
Analyst rating: N/A

Supplies advanced EAF equipment to Pacific Steel, enhancing their production capabilities and sustainability.

Context

Business Insights and Market Implications Analysis

Contract Details

  • Pacific Steel Group selected Danieli & C. S.p.A., an Italian company, as the lead supplier for its new electric arc furnace (EAF) micromill in Mojave, California.
  • The EAF mill will produce up to 380,000 tons per year of steel rebar using recycled content and solar energy.

Technology & Capabilities

  • Danieli will supply:
    • Continuous charge system for recycling steel.
    • Danieli Digimelter and LF digital melting and refining equipment.
    • QLP-DUE technology, which can transform liquid steel into finished products in just 10 minutes.
    • Q-One digital power feeder, power and process control systems, and robotics.
    • Q3-Met manufacturing execution system for production scheduling and tracking.

Investment & Employment

  • The project involves a net investment of approximately $350 million.
  • The micromill is expected to begin operations in early 2027, creating around 400 jobs.

Legal Background

  • Danieli’s involvement was the focus of a restraint of trade lawsuit filed by Pacific Steel against Commercial Metals Co. (CMC) earlier this decade.
  • The lawsuit was resolved late last year, clearing the way for Pacific Steel and Danieli to proceed with the project.

Sustainability & Innovation

  • The mill will directly connect to renewable energy sources, including solar arrays.
  • Eric Benson, CEO of Pacific Steel Group, described the partnership as an opportunity to build one of the cleanest, safest, and most efficient steel mills in the world.

Market Implications

  • Shift towards sustainable steel production: The use of recycled content and renewable energy aligns with global trends toward greener manufacturing.
  • Competitive dynamics: This deal underscores Danieli’s leadership in EAF technology and positions Pacific Steel as a pioneer in sustainable steelmaking.
  • Strategic considerations: The project highlights the importance of innovation, efficiency, and sustainability in modern steel production.

Long-Term Effects

  • The micromill is expected to have a significant impact on local recycling industries and job creation in the Mojave region.
  • The use of solar energy may set a precedent for other steelmakers looking to reduce carbon footprints and comply with environmental regulations.