Nucor to Build Tube Mill in the Midwest
Nucor Corporation (NYSE: NUE) announced plans to invest $164 million in a new tube mill in the Midwest, the largest market for steel products in the U.S. This facility aims to produce approximately 250,000 tons of hollow structural section tubing, mechanical steel tubing, and galvanized solar torque tube. Expected to commence operations in two years, the mill builds on prior investments in the region, enhancing Nucor's position as a low-cost steel producer. This move supports growing demand in construction, infrastructure, and renewable energy, particularly solar, reinforcing Nucor's commitment to sustainability.
- Investment of $164 million to build a tube mill enhances regional capacity.
- New mill expected to produce 250,000 tons of tubing, boosting product offerings.
- Strengthens Nucor's market leadership in the Midwest, aligning with growth in renewable energy.
- Potential risks from competitive pressures on sales and pricing.
- Dependence on prevailing steel prices and raw material costs could impact profitability.
CHARLOTTE, N.C., March 9, 2021 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that its Board of Directors approved plans to build a tube mill in the Midwest, the largest consuming region for steel and steel products. Products from the new tube mill will capitalize on investments Nucor has already made in the Midwest including a plate mill, galvanizing line and hot roll expansion. The new tube mill is a continuation of Nucor's focus on growth and commitment to sustainability and environmental stewardship. The
"Adding a tube mill in the Midwest will allow us to leverage recent investments we have made and further strengthen our market leadership position as a low-cost producer of steel products," said Leon Topalian, President & Chief Executive Officer of Nucor. "Building this tube mill puts us in a great position to serve the largest consuming regions of the U.S. for hollow structural section tubing and solar energy."
The new tube mill will have the capacity to produce approximately 250,000 tons of hollow structural section (HSS) tubing, mechanical steel tubing and galvanized solar torque tube, which will increase Nucor's product offerings for construction, infrastructure and renewable energy in the expanding solar market in the United States.
Nucor's Tubular Products (NTP) Group was formed in 2016 when Nucor entered the tube market with the acquisitions of Southland Tube, Independence Tube Corp. and Republic Conduit. Today, NTP consists of eight tubular facilities that are strategically located in close proximity to Nucor's sheet mills as they are a consumer of hot-rolled coil. The NTP Group produces HSS steel tubing, mechanical steel tubing, piling, sprinkler pipe, heat-treated tubing and electrical conduit. Total annual NTP capacity is approximately 1,365,000 tons.
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 piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; 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.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. 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 competition 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 steel prices and the changes in the supply and cost of raw materials, including scrap steel; (4) market demand for steel products; and (5) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2020 Annual Report on Form 10-K, Item 1A. Risk Factors. 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.
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SOURCE Nucor Corporation
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