Hybar LLC today announced that it has secured $1.1 billion in financing to construct a second technologically advanced and environmentally sustainable scrap metal recycling steel rebar mill adjacent to its existing facility in northeast Arkansas.The expansion project, known as the Expansion Mill, will significantly increase Hybar’s production capabilities and raise the company’s total rebar manufacturing capacity to approximately 1.3 million tons annually, representing nearly 13% of the domestic rebar market. Construction of the new facility is expected to take approximately 24 months.
Hybar’s existing rebar mill began operations nine months ago following a successful construction and commissioning process. The facility has achieved industry-leading standards in product quality and environmental performance while generating positive cash flow within its fourth month of operation. Based on the strong performance of the current mill, Hybar made the strategic decision to expand production capacity and continue meeting growing demand for domestically produced sustainable steel.
Like the existing facility, the Expansion Mill will utilize advanced technology supplied by SMS group, a global leader in steel industry equipment and technology solutions. The expanded operation will leverage Hybar’s strategic location and three transportation channels — barge, rail, and truck — to efficiently serve customers across the United States.
Hybar’s sustainable rebar products are supporting critical infrastructure projects nationwide, including data centers, medical campus expansions, energy infrastructure developments, and the repair and modernization of roads, bridges, and tunnels. The Expansion Mill will allow Hybar to further support these growing markets while strengthening the domestic supply chain for essential steel products.
Environmental sustainability remains central to Hybar’s operations. The company benefits from a special-rate power agreement with Entergy Arkansas, which operates one of the lowest carbon-emitting electricity generation portfolios in the United States. In addition, Hybar’s affiliated company, Green & Clean Power LLC, operates the largest industrial behind-the-meter solar and battery storage facility in the country adjacent to Hybar’s mill, supplying renewable power directly to operations.
Following completion of required certifications and final harmonic testing later this summer, Hybar expects to become the only steel producer in North America capable of producing steel using 100% renewable energy when solar generation is available.After completion of the expansion, Hybar expects to produce nearly 5,000 tons of rebar annually per employee, creating what the company believes will be one of the most productive workforces in the global steel industry.
“Hybar’s success is built on advanced technology, an exceptional location, strong transportation infrastructure, and a highly committed workforce,” said Dave Stickler, chief executive officer of Hybar. “Our culture of empowering employees, accelerating decision-making, and continuously improving how we produce steel is what truly sets us apart.”
“Hybar is a remarkable example of innovation and investment in Arkansas,” said Clint O’Neal, executive director of the Arkansas Economic Development Commission. “This expansion reflects the strength of Arkansas’ infrastructure, workforce, and business environment, and we look forward to supporting Hybar’s continued growth.”
Goldman Sachs & Co LLC and TPG Capital BD, LLC served as joint lead bookrunners for Hybar’s notes offering, with Truist Securities and Barclays serving as co-managers. Goldman Sachs, Truist, Barclays, and Crews & Associates also acted as underwriters for a municipal bond offering supporting the project financing. Hybar and its affiliated companies — Green & Clean Holdings LLC, Green & Clean Power LLC, and Green & Clean Terminals LLC — are owned by TPG Rise Climate, KM&T Hybar Holdings LLC, Global Principal Partners LLC, and Quanta Services, Inc.
