Nucor to Modernize Indiana Sheet Mill
Nucor Corporation (NYSE: NUE) plans a $290 million investment to enhance its Crawfordsville, Indiana steel sheet mill by adding a construction-grade continuous galvanizing line and a prepaint line. This initiative is expected to create 80 jobs and will take approximately two years, contingent on various approvals. The new galvanizing line will have a capacity of 300,000 tons annually, while the prepaint line will produce 250,000 tons per year. This expansion supports Nucor's strategy to grow its steel business and enhance its prepaint capabilities.
- Investment of $290 million to expand product capabilities.
- Creation of 80 new jobs in Crawfordsville, Indiana.
- New galvanizing line capacity: 300,000 tons per year.
- New prepaint line capacity: 250,000 tons per year.
- Two-year timeline for project completion may delay benefits.
- Dependence on permitting and regulatory approvals.
CHARLOTTE, N.C., Feb. 1, 2022 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that its board of directors has approved a
"Investing in Nucor Steel Indiana will allow us to grow our profitability in the Midwest construction region and expand Nucor's prepaint footprint," said Rex Query, Executive Vice President of Sheet and Tubular Products for Nucor Corporation. "This investment is part of our strategy to grow our core steel businesses and expand our portfolio of value-added products."
The construction grade continuous galvanizing line will have a capacity of 300,000 tons per year while the prepaint line will have an annual capacity of 250,000 tons per year. This investment further expands Nucor's existing galvanizing and prepaint capabilities, which include recently added continuous galvanizing lines at its sheet mills in Arkansas and Kentucky, and the acquisition of a prepaint line at its Arkansas sheet mill. Nucor Steel Indiana employs approximately 770 teammates.
Nucor Steel Indiana was Nucor's first steel sheet mill, starting operations in 1989. The Crawfordsville mill is where Nucor pioneered electric arc furnace (EAF) thin-slab casting. Since this breakthrough, Nucor has continued to invest in advanced sheet steel products and technologies. Nucor operates five strategically located sheet mills that utilize thin slab casters and recently announced adding a sixth sheet mill, a majority-owned joint venture in California. These mills produce flat-rolled steel for automotive, appliance, construction, pipe and tube and many other industrial and consumer applications. In September 2021, Nucor announced its plan to build a seventh sheet mill, a three-million-ton capacity state-of-the-art facility that will be located in Mason County, West Virginia, to serve the country's largest steel consuming regions, the Midwest and the Northeast.
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; 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. 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; (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, 2020. 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
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