Planned steel plant in Colorado, new frac sand terminal in Texas target shale business

Cargill has announced plans to build its eighth U.S. steel processing center in the Great Western Industrial Park in Windsor, Colo.

Located about 60 miles north of Denver, the park is owned by The Broe Group, which also owns short-line holding company OmniTRAX Inc.

Construction on the 60,000-square-foot steel processing and distribution facility is scheduled to begin soon. To be served by OmniTRAX's Great Western Railway of Colorado L.L.C. and operated by Cargill Metals Supply Chain, the facility will help meet increasing demand for steel products in the manufacturing and shale oil industries, Cargill officials said in a press release.

"By locating in northern Colorado, which is in the heart of one of the largest oil shale formations in the U.S., [we] can better serve and bring more value to our customers in this part of the country," said Cargill Steel Service Center President Mike Taylor.

Meanwhile, Fairmount Minerals' Santrol subsidiary has opened a new proppant/frac sand terminal in Southton, Texas.

The rail-served facility is Santrol's seventh terminal in the Eagle Ford Shale, and will serve the formation's north and central portions. Santrol also operates rail-served, Eagle Ford terminals in Alice, Gardendale, Gonzales and Pleasanton, Texas, and a barge-served terminal in Victoria, Texas. The Alice terminal feature two rail facilities.