Composite ties will be manufactured under exclusive license from Primix Corporation, Atwood, Indiana, (OTC: PMXX) which previously developed and introduced the product under the "Primix" label. The composite tie consists of a formed steel core which is filled with concrete for stability and mass, and recycled synthetic inserts for spike retention. Both the core and the inserts are encapsulated by a synthetic material primarily made from recycled rubber and plastic. The steel used in the cores will be supplied by SDI's Flat Roll Division.
Steel Dynamics considers the composite tie business to be a natural complement to its rail business, offering specific product benefits to customers. Both products will share the same customer base, which is primarily North America's Class I railroads. North American demand for railroad ties is estimated to range from 15 to 19 million ties per year, a $700 to $800 million market. Currently, wood ties comprise an estimated 95% of the market, the remainder being concrete, steel, and composite ties. SDI believes there is excellent potential for composite ties to gain a substantial share of this market because of the new product's perceived longer life, operational benefits, and cost-effectiveness.
Forward Looking Statements
This press release contains predictive statements about future events, including Steel Dynamics' investment and participation in the management of a new manufacturing venture, the planned start-up and operation of this new business, and successfully marketing new products to achieve market penetration of the North American market. 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.
We refer you to SDI's detailed explanation of the many 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 and in other reports which we from time to time file with the Securities and Exchange Commission, available publicly on the SEC's Web site, http://www.sec.gov and on the company's Web site, http://www.steeldynamics.com .
CONTACT: Dick Teets, Vice President & General Manager, Structural and Rail
Division of Steel Dynamics, Inc., +1-260-625-8100; or Carl Fischer,
President of Primix Corporation, +1-574-858-0069
Web site: http://www.steeldynamics.com/