New Barge-Served Mill To Double In Size
Hybar LLC announced June 26 that it has raised $1.1 billion to build a second technologically advanced, environmentally sustainable scrap metal recycling steel rebar mill (known as the Expansion Mill) immediately next to its existing rebar mill on the Mississippi River in Osceola, Ark. Hybar’s original facility had its grand opening last November. Now it plans to more than double in size.
Hybar and its related entities are owned by several investment and operating partners. They include Green & Clean Holdings LLC, the parent company; Green & Clean Power LLC, which focuses on solar and battery storage; and Green & Clean Terminals LLC, which operates the river port.
The ownership group includes TPG Rise Climate, the dedicated climate investing strategy of TPG’s $32 billion global impact investing platform; KM&T Hybar Holdings LLC, a subsidiary of Koch Minerals & Trading LLC, which is part of Koch Inc. and specializes in commodity trading and services; Global Principal Partners LLC, an investment entity owned by Hybar’s senior management team; and Quanta Services Inc., an infrastructure solutions provider serving the utility, renewable energy, technology, communications, pipeline and energy industries.
Hybar’s existing mill was commissioned nine months ago following a successful construction effort. The Expansion Mill will increase Hybar’s rebar production capacity to approximately 1.3 million tons annually, representing just under 13% of the domestic market. Construction of the Expansion Mill will take approximately 24 months. Like the existing mill, the Expansion Mill will be supplied by SMS group, a leading technology supplier to the world’s steel industry.
Hybar has capitalized on its three direct modes of transportation, barge, rail and truck, to reach customers throughout the United States. Hybar’s rebar is being used in data center projects, medical campus expansions, the energy infrastructure buildout and the continued repair and upgrading of roads, bridges and tunnels. Hybar plans to continue to penetrate these markets with the Expansion Mill.
Energy Footprint
Hybar has a special rate power contract with Entergy Arkansas, under which Hybar buys electricity. Entergy Arkansas has one of the lowest carbon-emitting electric energy generation portfolios in the United States. Supplementing the relationship with Entergy, Hybar’s sister company, Green & Clean Power LLC, operates the largest industrial behind-the-meter solar and battery storage facility in the United States. The facility is located adjacent to Hybar, and power is fed directly into Hybar’s operations. Once the last of the needed certifications are received and the final harmonic tests are completed later this summer, when the sun is shining, Hybar expects to be the only steel producer in North America capable of producing steel using 100% renewable energy.
Following the expansion, Hybar expects to produce close to 5,000 tons of rebar per year per employee, giving Hybar what the company believes will be the most productive labor force in the world’s steel industry.
What Makes The Difference
When commenting on what distinguishes Hybar from its competitors, Hybar CEO Dave Stickler said, “We have best-in-class technology, a great site with three modes of transportation and outstanding, highly motivated employees, but what truly differentiates Hybar is our ‘can-do, get-it-done’ culture. Empowering employees, stripping away bureaucracy, pushing decision-making down to the mill floor and constantly looking for better, faster, more sustainable ways to make steel are the keys to Hybar’s success.”
“Hybar is a true success story, building state-of-the-art facilities and producing sustainable steels using scrap metal in northeastern Arkansas,” said Clint O’Neal, executive director of the Arkansas Economic Development Commission. “Hybar is continuing to invest in Arkansas thanks to our state’s infrastructure, workforce and favorable business climate. We are proud of this growing partnership and look forward to many more years of Hybar’s success in our state.”
