STEEL PLANT BUSINESS PLAN
I. Executive Summary
Company Description
Liberty Steelworks — named to reflect a focus on American supply resilience — is a modern U.S. steel manufacturer serving critical domestic industries. We operate a state-of-the-art plant using Electric Arc Furnace (EAF) technology to produce Hot Rolled Coil, Alloy Plate, and Advanced High-Strength Steel. Our core activities are EAF melting from recycled steel and scrap, slab casting and rolling, heat treatment, precision finishing, and on-site quality assurance. We sell directly to OEMs, Tier‑1 suppliers, government contractors, and fabricators who require consistent, high-grade steel with reliable lead times. One-line: domestic, high-quality steel with predictable pricing and fast delivery.
We differentiate by combining EAF-based sustainability and lower carbon intensity with tight quality controls and flexible lot sizes that reduce customer inventory cost. Target markets are automotive, construction, defense, and energy sectors in the U.S. Short-term goals: reach 250,000 tons annual capacity and secure binding supply agreements with three major buyers within 24 months. Long-term goals: scale to 1 million tons capacity, expand regional distribution, and deliver at least 40% lower cradle-to-gate carbon intensity versus traditional blast-furnace supply. One-line: scale reliably while cutting emissions and insulating U.S. industry from foreign supply shocks.
Problem
American construction and automotive sectors depend heavily on imported steel, creating widespread supply disruptions and price swings that delay projects and raise costs.
Customers currently face stalled deliveries, extended lead times, sudden raw-material price spikes, forced design changes that reduce quality, higher borrowing costs from slipped schedules, and constrained manufacturing capacity for critical components.
There is a clear market gap: the United States lacks a stable domestic source for high-grade steel, leaving industries exposed to geopolitical and logistics risks, long-term infrastructure cost escalation, and weakened industrial resilience.
Solution
We operate a U.S.-based Electric Arc Furnace (EAF) steel facility that supplies Hot Rolled Coil, Alloy Plate, and Advanced High-Strength Steel for construction, heavy equipment, and automotive manufacturers. This domestic source reduces reliance on foreign steel, shortens lead times, and provides certified, traceable material batches to stabilize project timelines and manufacturing capacity.
By offering repeatable chemistry and certified quality, we address supply-chain vulnerability, price volatility, and the lack of domestic high-strength alloys while supporting domestic supply-chain resilience and improved environmental performance versus traditional methods.
Mission Statement
Our mission is to strengthen the American industrial landscape by providing a reliable, sustainable, and high-quality domestic supply of steel. We commit to continuous innovation in metallurgy and manufacturing excellence to support critical infrastructure and manufacturing projects. We aim to be the partner of choice for industries building a more resilient and environmentally responsible future.
Key Success Factors
These are the primary factors that will drive the plant’s financial and operational success.
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Early breakeven in January 2026 that limits cash burn and proves unit economics.
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24‑month payback on investment that delivers rapid investor returns and capital recycling.
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Electric arc furnace (EAF) technology providing a clear sustainability edge in carbon‑conscious markets.
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Experienced management and metallurgical engineers ensuring production quality and process optimization.
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Direct B2B sales and long‑term supply agreements plus AHSS sheet production from 2027, securing stable, high‑margin revenue.
Financial Summary
High-grade domestic steel production with strong early cash generation and rapid payback.
Ratio |
2026 |
2027 |
2028 |
Projected Revenue |
$363,000,000 |
$490,650,000 |
$646,300,000 |
Projected EBITDA |
$278,406,000 |
$381,368,000 |
$509,434,000 |
Expected ROI |
ROE 2439.99; IRR 0.07% |
ROE 2439.99; IRR 0.07% |
ROE 2439.99; IRR 0.07% |
The project requires a total capital investment of $425,000,000 with projected breakeven in Jan‑2026 and full payback in 24 months; expected returns are ROE 2439.99 and IRR 0.07%.
Financial outlook: high margins, rapid payback, and scalable revenue to $695,085,000 EBITDA by 2030.
Funding Requirements
We require $687,491,000 to build and commission a domestic high-grade steel plant, covering plant capex and minimum cash during the 2026 setup phase.
Categories |
Amount, USD |
Initial plant capital expenditure (plant capex) |
$425,000,000 |
EAF Equipment Purchase |
$150,000,000 |
Rolling Mill Installation |
$80,000,000 |
Continuous Caster System |
$60,000,000 |
Scrap Yard & Material Handling |
$30,000,000 |
Power Distribution Infrastructure |
$45,000,000 |
Water Treatment Plant |
$20,000,000 |
Laboratory & Quality Control Equipment |
$15,000,000 |
Environmental Control Systems |
$25,000,000 |
Working capital |
$262,491,000 |
Total funding required |
$687,491,000 |