Note F - Property, Plant and Equipment

3 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

NOTE F — PROPERTY, PLANT AND EQUIPMENT

The Company continued

two

previously announced capital expenditure projects during the

first

quarter of fiscal

2021.

The

first

project was a building expansion at the Company's coil processing facility in Hickman, Arkansas that was put into service during

May 2020.

The project added an additional

22,000

square feet of storage space to the facility. This project was completed at an actual cost of approximately

$1,083,000

compared to an original estimated cost of

$1,100,000.

The

second

project involves the purchase and installation of a stretcher leveler coil processing line at the Company's coil processing facility in Decatur, Alabama. This newly acquired equipment will replace the existing processing equipment at the Decatur plant and will expand both the size range and grade of material that the Decatur plant is able to process. The equipment was purchased from and is being constructed, fabricated and installed by Delta Steel Technologies. In

June 2020,

the existing equipment at the Decatur facility was removed to allow the foundation to be prepared for the installation of the new equipment. As part of the equipment removal, the cut-to-length line was sold for scrap resulting in anticipated proceeds of

$30,957

and

$2,688,381

of original cost being removed from machinery and equipment and accumulated depreciation of

$2,657,424

being removed. The temper mill was disassembled with the components being cleaned, cataloged and stored as the Company intends to sell the equipment. The Company currently expects the installation of the new equipment to begin in

October 2020

and expects commercial use of the equipment to begin in

February 2021.

The Company currently estimates the cost of this project to be

$5,800,000.

As of

June 30, 2020,

expenditures related to the Decatur project totaled

$3,874,444

with this amount reported as Construction in Process on the Company's Consolidated Balance Sheet.