November 1, 2022- Highbar LLC, a newly formed company focused on sustainable scrap metal recycling and steel production, announced today that it has selected a greenfield site in northeast Arkansas to build the first of its two rebar steel mini mills. The mills are designed to be world leaders in terms of energy and water efficiency, labor productivity, and carbon emission reductions.
"My team and I have had great success investing billions of dollars in northeast Arkansas over the past eight years. I am pleased that after conducting a multi-state site search that we are able to make this announcement today," said Dave Stickler, chief executive officer of Highbar and senior managing partner of Global Principal Partners, a leading metals and mining investment and project development firm. "Arkansas is a great place to conduct business, especially steel business," Stickler stated.
The Highbar mill in northeast Arkansas will sit on over six hundred acres of property just outside of the town of Osceola. The project will include space for an expanded Mississippi River port facility, a direct Class 1 railroad connection, and a planned adjacent solar installation. Groundbreaking is scheduled to take place in the second quarter of 2023 once final permits are in place and equipment deliveries begin.
Highbar plans to invest approximately $500 million and create 200 direct and indirect jobs, with the direct jobs paying $140,000 a year on average plus benefits and the indirect jobs paying $60,000 a year on average plus benefits. During the planned 22-month construction period, peak construction employment is expected to exceed 600 jobs.
The technology for the Highbar mill will be provided by SMS group, a leading supplier to the world's steel making community. The Highbar project will build on the tremendous successes Dave and his team have had working with SMS to build and expand many of the world's most successful scrap metal recycling and steel production facilities over the past three decades.
Reflecting the mill's location in the center of the United States and its proximity to three robust transportations modes (truck, rail, and barge), Highbar has already achieved significant market acceptance with over 20% of its output pre-sold under long-term agreements. On the raw material input side, it is expected the same three transportation modes will serve Highbar well.
"The addition of Highbar's first rebar mill in Arkansas will not only support the growing steel industry in northeast Arkansas, but it will further diversify our economy and provide hundreds of high-wage jobs to deserving families," Governor Asa Hutchinson said. "I'm excited about the opportunities this significant investment will bring to the region."
"Arkansas continues the momentum to become a national leader in the steel industry," Arkansas Secretary of Commerce Mike Preston said. "Companies like Highbar are looking for locations where they can find a qualified workforce and low business costs while being able to get products to customers quickly and efficiently. Arkansas checks all of the boxes, and companies are taking note. I am confident we will continue to see many such investments in the future."
