Steel Dynamics’ Standard Rail now approved by major U.S. railroads

Steel Dynamics, Inc., said that Standard Strength rail produced at its Columbia City, Ind., mill has been tested and approved by four U.S.-based Class 1 railroads and by Amtrak (the National Railroad Passenger Corporation). The Class 1 railroads include BNSF, CSX Transportation, Norfolk Southern, and the Union Pacific.

Following extensive
internal research and testing, samples of the company’s rail underwent rigorous
testing and evaluation by independent laboratories to certify adherence to specifications
prescribed by the American Railway Engineering and Maintenance-of-Way
Association (AREMA), the industry organization that sets standards for design,
construction and maintenance of America’s railroad infrastructure. The
railroads then completed their own testing and evaluation protocols, clearing
the way for Steel Dynamics to become an approved rail supplier. SDI’s
Structural & Rail Division has begun rail shipments to Class 1 railroads.

Complementing the rail
production facility is SDI’s technologically advanced on-site Continuous Welded
Rail (cwr) plant that joins 240-foot rails into continuously welded rail
strings up to 1,600 feet long. This facility was modified early in 2010 to
allow year-round uninterrupted operation. Recently, orders for cwr have
increased significantly. CWR shipments have been made to a Class 1 railroad
and, in conjunction with the L.B. Foster Company, 5,600 tons of cwr rail have
been supplied for the Northeast New England Passenger Rail Authority. Other cwr
customers include regional and shortline freight and passenger railroads.

Commercial production of
Standard Strength rails that meet or exceed all current AREMA specifications
began earlier this year. These products are gaining widespread acceptance by
railroads in the United States. With the expectation that the rail can be
tailored for use in Canada, the company is currently conducting internal
testing and evaluation of alloy-enriched rails of a type used by the major
Canadian railroads. In addition, rail products have been exported to Mexico. The
company expects the export market to become an important new market for its
rail products.

Dick Teets, president and
COO of SDI’s Steel Operations, stated, "We are very pleased that our Standard
Strength rail has gained acceptance for use by the major U.S. railroads, and we
are pleased to have begun making rail shipments to them, including continuous
welded rail. Our dedicated employees are very motivated and are making rapid
progress ramping up rail production. We expect the recently made investments in
a second casting machine that efficiently produces high-quality rail blooms
will pay off as we expand rail production to meet the needs of these important
new SDI customers. Our focus is on delivering differentiated, quality products
that will allow us to grow quickly to become a major provider of rail to the
North American railroad industry and to other users in the Western Hemisphere. We
believe that the nation’s renewed emphasis on both freight and passenger rail
transportation will provide our steel business a unique opportunity for
incremental growth."