Industrial/  Manufacturing

Company Type

Metals Manufacturing


$45 Million

Investment Type

Senior Debt

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Our client is seeking $45 million of senior debt to develop a steel mill in Texas

  • $45 million of equity will be invested by our client

  • $45 million of equity will be invested by preferred equity investors

  • Plant at in Texas will have manufacturing capacity of 350 Kilotons of construction rebar steel

  • Highly efficient, electric arc furnace to heat recycled scrap metals using climate friendly green steel production methods with significant reductions in electricity requirements and carbon

  • The U.S. steel rebar market was estimated at 7,036.3 kilotons in 2020 and is expected to reach 10,956.5 kilotons in 2028



  • US is the world’s largest net importer of steel, importing 7,036 kilotons in 2020, despite 25% tariffs on imports

  • US is also the world’s largest ferrous scrap producer, exporting 16,874 kilotons in 2020. Given the price spread, scrap can very profitably be converted to steel

  • Global steel rebar market was valued at $215.5 billion in 2020 and is projected to reach $354.3 billion in 2028

  • Bipartisan approved $1.2 trillion infrastructure bill has created positive catalysts/increased demand among material suppliers (including rebar) for construction of  bridges, railways, roads, airports and ports


  • Plan to develop five steel mills in the US. The first will be in Texas, and produce 350 kilotons of rebar construction steel by consuming 403 kilotons of locally produced scrap

  • MOU in place for 100% supply of 450 kilotons of steel scrap needed for the plant

  • 100% off-take agreements under negotiation: in conversation with several large US steel trading firms for off-take of its 350 Kilotons construction steel rebar products
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Hi. We're not around right now. But you can send us an email and we'll get back to you, asap.

Thanks, Ken

Ken Margolis | Managing Partner Castle Placement, LLC
1460 Broadway Street, Rte 400
New York, New York 10036
(212) 418-1188 | C: (516) 712-7784