CHARLOTTE, N.C., Sept. 28,
2022 /PRNewswire/ -- Nucor Corporation's (NYSE: NUE)
Board of Directors approved the construction of a galvanizing line
at Nucor Steel Berkeley in South
Carolina to support the company's strategy to expand its
capabilities and grow participation in the automotive and consumer
durables markets. The $425 million
investment will create more than 50 new full-time jobs and start-up
is expected in mid-2025. Additionally, Nucor's Board of Directors
approved a galvanizing line to be constructed in the western
United States with details to be
announced at a future date.
"These investments support our strategy of shifting our mix to
higher margin value-added products and capitalizing on
sustainability trends that are driving opportunities for Nucor,"
said Leon Topalian, Chair, President
and Chief Executive Officer of Nucor Corporation. "The new
Berkeley line will complement our
recent galvanizing expansions at our Hickman and Gallatin
operations and will be our eighth wholly-owned galvanizing
line."
The new South Carolina
galvanizing line will have an annual capacity of approximately
500,000 tons and will be able to produce galvanized steel up to 72
inches wide. Last month, Nucor Steel Berkeley announced a five-year
$200 million modernization project,
including constructing a new air separation unit to supply
industrial gases for the mill's steelmaking operations. The mill
currently employs 975 teammates.
The State of South Carolina has
offered job development credits to Nucor and assisted with site
preparation costs for the project by providing Berkeley County with a grant issued by the SC
Department of Commerce Coordinating Council for Economic
Development. The state's utility provider, Santee Cooper, similarly
has provided a grant to Berkeley
County to help cover the costs of facility upgrades related
to the expansion. Nucor and Berkeley
County also entered into a fee-in-lieu of tax agreement.
"We would like to thank the State of
South Carolina, Berkeley
County, and Santee Cooper for their support for this
project. We are excited to further expand the capabilities to
better serve our customers," said Mike
Lee, Vice President and General Manager of Nucor Steel
Berkeley.
Nucor operates five strategically located sheet mills that
utilize thin slab casters to produce flat-rolled steel for
automotive, appliance, construction, pipe and tube, and many other
industrial and consumer applications. The current capacity of
Nucor's sheet mills is estimated at approximately 13 million tons
per year. Nucor has a sixth sheet mill under construction in
West Virginia and additionally
owns a majority stake in California Steel Industries as well as a
joint venture automotive galvanizing line in Mexico. All of Nucor's sheet mills are
equipped with galvanizing lines and five of them are equipped with
cold rolling mills for the further processing of hot-rolled sheet
steel.
About Nucor
Nucor and its affiliates are manufacturers of steel and steel
products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and
alloy steel -- in bars, beams, sheet and plate; hollow structural
section tubing; electrical conduit; steel racking; steel piling;
steel joists and joist girders; steel deck; fabricated concrete
reinforcing steel; cold finished steel; precision castings; steel
fasteners; metal building systems; insulated metal panels; overhead
doors; steel grating; and wire and wire mesh. Nucor, through The
David J. Joseph Company, also brokers ferrous and
nonferrous metals, pig iron and hot briquetted iron / direct
reduced iron; supplies ferro-alloys; and processes ferrous and
nonferrous scrap. Nucor is North
America's largest recycler.
Forward-Looking
Statements
Certain statements contained in this news release are
"forward-looking statements" that involve risks and uncertainties
which we expect will or may occur in the future and may impact our
business, financial condition and results of operations. The words
"anticipate," "believe," "expect," "intend," "project," "may,"
"will," "should," "could" and similar expressions are intended to
identify those forward-looking statements. These forward-looking
statements reflect the Company's best judgment based on current
information, and, although we base these statements on
circumstances that we believe to be reasonable when made, there can
be no assurance that future events will not affect the accuracy of
such forward-looking information. As such, the forward-looking
statements are not guarantees of future performance, and actual
results may vary materially from the projected results and
expectations discussed in this news release. Factors that might
cause the Company's actual results to differ materially from those
anticipated in forward-looking statements include, but are not
limited to: (1) competitive pressure on sales and pricing,
including pressure from imports and substitute materials; (2) U.S.
and foreign trade policies affecting steel imports or exports; (3)
the sensitivity of the results of our operations to prevailing
market steel prices and changes in the supply and cost of raw
materials, including pig iron, iron ore and scrap steel; (4) the
availability and cost of electricity and natural gas, which could
negatively affect our cost of steel production or result in a delay
or cancellation of existing or future drilling within our natural
gas drilling programs; (5) critical equipment failures and business
interruptions; (6) market demand for steel products, which, in the
case of many of our products, is driven by the level of
nonresidential construction activity in the United States; (7) impairment in the
recorded value of inventory, equity investments, fixed assets,
goodwill or other long-lived assets; (8) uncertainties surrounding
the global economy, including excess world capacity for steel
production, inflation and interest rate changes; (9) fluctuations
in currency conversion rates; (10) significant changes in laws or
government regulations affecting environmental compliance,
including legislation and regulations that result in greater
regulation of greenhouse gas emissions that could increase our
energy costs, capital expenditures and operating costs or cause one
or more of our permits to be revoked or make it more difficult to
obtain permit modifications; (11) the cyclical nature of the steel
industry; (12) capital investments and their impact on our
performance; (13) our safety performance; and (14) the impact of
the COVID-19 pandemic and any variants of the virus. These and
other factors are discussed in Nucor's regulatory filings with the
Securities and Exchange Commission, including those in "Item 1A.
Risk Factors" of Nucor's Annual Report on Form 10-K for the year
ended December 31, 2021. The
forward-looking statements contained in this news release speak
only as of this date, and Nucor does not assume any obligation to
update them, except as may be required by applicable law.
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SOURCE Nucor Corporation
