WINDCOLORS | stock.adobe.com
Koch Minerals & Trading (KM&T), Wichita, Kansas, has announced its participation in Osceola, Arkansas-based Hybar’s debt and equity financing round to build, start up and operate a scrap metal recycling steel rebar mill in Arkansas.
KM&T joins TPG Rise Climate, Fort Worth, Texas, and Global Principal Partners, Miami, in the $700 million total investment, $470 million of which will be spent to build the rebar mill. KM&T says the remaining financing will be used to operate the mill, construct a solar power facility and port facility and pay debt service costs during construction. The mill, expected to take 22 months to construct, is being built in northeast Arkansas on a 1,300-acre site with direct access to barge, rail and truck transportation options. The mill will produce high-yielding rebar, primarily used in large infrastructure projects.
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Koch Metallics, a subsidiary of KM&T, will provide metal procurement services to Hybar and risk management services to its customers.
“We’re excited to support Hybar in bringing this transformational scrap metal recycling facility to market,” says Vance Holtzman, senior vice president of KM&T Investments. “Moving forward, we see this as a mutually beneficial partnership, matching KM&T’s capabilities with the Hybar and TPG teams’ proven track record in developing innovative projects that meet market needs.”
Germany-based SMS group says it will supply Hybar’s mill technology. The technology is designed to reduce the energy needed to produce rebar, the company says. Hybar plans to produce 630,000 tons of rebar annually and hire approximately 154 employees.
“We’re proud to have the backing of Koch Minerals & Trading as part of a group of investors that see the potential promise of our innovative scrap metal recycling steel rebar technology,” Hybar CEO Dave Stickler says.
KM&T’s partnership with Hybar follows an investment in Big River Steel.
