SeverCorr
In 2007, following a two-year self-managed greenfield construction effort, SeverCorr LLC, a company formed by GPP and a group of like-minded investors, began operating a facility that was quickly recognized as being the leading scrap metal recycling flat-rolled mini mill in the world in terms of product quality, labor productivity, and profitability.
SeverCorr was formed to capitalize on the opportunity that existed in the North American flat-rolled steel market for an environmentally focused, entrepreneurial company. More specifically, SeverCorr was formed to challenge industry norms, and to prove once and for all that the highest quality flat-rolled steel could be produced using scrap metal rather than iron ore and coal-based coke. (Prior to the SeverCorr project, the integrated steelmaking community was still clinging to the view that producing the highest grades of flat-rolled steel required the less-efficient, more cost-intensive, and less environmentally friendly integrated steelmaking process involving iron ore and coal-based coke.)
Following a highly successful start-up, SeverCorr became a certified supplier to Ford Motor in less than seven months, which GPP believes is an industry record. It also became clear that the highest grades of flat-rolled steel could be produced using scrap metal in a mini mill steelmaking process. Along with investing its own capital in the project, GPP structured and raised the approximate $880 million of funding necessary to build and start-up the SeverCorr facility, which is located in northeast Mississippi. In addition to the capital raising efforts, GPP led the state and local economic incentive negotiations, structured and negotiated the major technology and construction agreements, and drove the electrical power contract process, which involved both state and federal regulations.
Today, the SeverCorr facility is owned by Steel Dynamics, and it remains one of the most productive and profitable scrap metal recycling and steel production facilities in the world.
The SeverCorr project followed the model that GPP had previously used so successfully. This included a self-managed construction effort, eliminating corporate bureaucracy, empowering employees, putting in place a robust production bonus plan, and focusing on environmental sustainability.