Newly formed Hybar will establish a scrap metal recycling steel rebar mill in Mississippi County, Arkansas. The $700 million project is expected to create at least 140 jobs.
The new environmentally sustainable mill will be located on a 1,300-acre site.
“The Hybar project was a team effort involving state, regional and local government leadership, our management team, and many others to get to today’s announcement,” said Dave Stickler, Hybar’s chief executive officer. “I have been involved in several greenfield and expansion steel industry projects in Arkansas over the past eight years, and I know firsthand what a business-oriented, can-do state Arkansas is. Many thanks to Governor Sanders and her team.”
As an incentive Entergy Arkansas will be supplying electricity to Hybar under a special rate contract that includes renewable power generation. The Arkansas Teacher Retirement System is supporting the project by providing various forms of financing to Hybar.
“We are proud that Hybar has chosen to call Arkansas home. Very soon, Mississippi County in northeast Arkansas will produce more steel than any other county in the nation. That only happens with strong partnerships at the state, local and private sector levels working together as a team. The business climate in Arkansas, led by Governor Sarah Huckabee Sanders, continues to reduce taxes and regulations and has placed workforce development solutions at the forefront of every economic development project,” noted Secretary of Commerce Hugh McDonald. “We thank Hybar for its decision and making a significant contribution to the state’s economic growth and look forward to a long partnership.”
The $700 million of financing raised in support of the Hybar project includes a $330 million issuance of twenty-five-year bonds, according to state officials. The Arkansas Development Finance Authority acted as the conduit issuer of the bonds, the proceeds from which were loaned to Hybar. Goldman Sachs & Co. LLC served as lead underwriter for the offering and Truist Securities and Crews & Associates, Inc. acted as co-managers.
“Congratulations to Hybar on today’s significant project milestone,” added Clint O’Neal, executive director of the Arkansas Economic Development Commission (AEDC). “Companies like Hybar have made Arkansas a national leader in the steel production industry. We are thankful for the company’s commitment to creating 200 high-paying jobs in Mississippi County, and we look forward to celebrating the company’s success for years to come.”
Hybar’s technology is designed to significantly reduce the amount of energy needed to produce rebar. The company expects its greenhouse gas emissions to be the lowest among all North American steel producers.
