Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Friedman is installing a new facility in Sinton, Texas alongside Steel Dynamics’ (SDI’s) flat roll steel mill that is still under construction. The location was selected due to geographic advantages, and an expanded portfolio. The $21mn site is expected to be commissioned by April 2022. Capacity thresholds at the new site were undisclosed. 


The 70,000sq ft facility will be located on about 25 acres leased in a 99yr contract from SDI. The site will have cut-to-length lines capable of cutting material up to 1 inch thick to 96 inches in width. The large line yields exceed 100,000 psi, which will expand its product line. The location also helps the company better serve US Southwest and Mexican customers. 


Friedman expects Q1 FY22 ending June 30, 2021, to attain higher operating results against Q4 FY21 due to the higher steel prices trend expected to continue through the quarter. 


The company manufactures and processes coil and tubular products and has expected net earnings of $9.5-10.5mn in Q4 FY21 ending March 31, 2021. The quarter is the most profitable in the company’s history as is attributed to higher steel prices, risk management practices, and expansion of supply chain options. 


Texas-based Friedman also has locations in Hickman, Arkansas, and Decatur, Alabama. With a new stretcher level cut to length line in Alabama, the company expanded product lines for regional customers in May 2021.

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