Hybar breaks ground on $700 million rebar mill in Osceola

A newly formed company, Hybar, has started construction on its scrap metal recycling steel rebar mill project. The mill is being built on a 1,300-acre site in Osceola. The $700 million project includes a $330 million issuance of 25-year bonds. The Arkansas Development Finance Authority acted as the conduit issuer of the bonds, the proceeds from which were loaned to Hybar by Goldman Sachs & Co.

About $470 million will be spent to build the rebar mill. The remainder of the financing will be used to start up and operate the mill and pay certain debt service costs during construction. The mill is expected to take 22 months to construct.

“Mississippi County is the centerpiece of Arkansas’ booming steel industry and Hybar’s announcement that they are beginning construction on their new facility only cements that fact. Soon, the county will produce more steel than any other in the country. My administration is investing in career and technical education, expanding our workforce, cutting red tape, and lowering taxes to make even more projects like this one possible in the Natural State,” said Gov. Sarah Sanders.

Hybar has committed to creating no less than 140 direct jobs that pay on average no less than $125,000 annually and 60 independent direct jobs that pay an average of $75,000 annually.

“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 Gov. Sanders and her team.”

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.

“Entergy Arkansas is pleased to partner with Hybar and provide clean energy to the growing, sustainable steel industry in Northeast Arkansas. We appreciate the hard work of the governor and her team, the City of Osceola, and the Arkansas Public Service Commission in helping make this project happen. I also want to thank Dave Stickler and his team for continuing to believe in and invest in our great state with advanced manufacturing and high paying jobs,” said Laura Landreaux, president and chief executive officer of Entergy Arkansas.

Mississippi County, home to Nucor and Big River Steel, which is owned by U.S. Steel, is the largest steel producing county in the U.S. Billions of dollars of infrastructure investment and thousands of jobs in the region rely on the steel industry.

There are more than 20 steel-related businesses in the county employing more than 3,600 workers. That’s about 1 in every 5 jobs in the county.

U.S. Steel announced earlier this year it intends to build a $3 billion companion steel mill near the Big River Steel mill. It will create 900 jobs with an average pay over $100,000 annually. It is the largest capital investment project in Arkansas history.

Nucor Steel has three mills in Mississippi County.

“Congratulations to Hybar on today’s significant project milestone,” said Clint O’Neal, executive director of the Arkansas Economic Development Commission. “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.”