Nucor (NUE) Plans to Build Specialty Cold Mill Complex at Arkansas Sheet Mill

September 20, 2016 4:32 PM EDT

News and research before you hear about it on CNBC and others. Claim your 2-week free trial to StreetInsider Premium here.

Nucor Corporation (NYSE: NUE) announced that it is adding an additional cold mill at its Nucor Steel Arkansas division. The specialty cold mill complex will expand Nucor's capability to produce advanced high-strength, high-strength low-alloy, and motor lamination steel products. The mill will cost an estimated $230 million to build and is expected to be operational in approximately two years.

"This specialty cold mill complex supports our strategy of moving up the value chain and growing sales to the automotive market," said John Ferriola, Chairman, Chief Executive Officer and President of Nucor. "It will bring value to all of Nucor's sheet mills by expanding our capability to produce advanced high-strength steels and broadening the automotive capability of our galvanized lines at Nucor Steel Decatur and Nucor Steel Berkeley."

Ducker Worldwide estimates that 4 million tons of advanced high-strength and ultra advanced high-strength steels will be used for the automotive market by 2025. The specialty cold mill complex will give Nucor the capability to produce products the company currently does not make, adding to Nucor's comprehensive product portfolio and further differentiating Nucor from its competitors as the leader in providing solutions to its customers. Locating the cold mill at Nucor's sheet mill in Arkansas will give the company a transportation advantage over competitors outside the region currently supplying the local market and the growing Mexican market.

"We are excited to bring this expansion to Arkansas that will enable us to efficiently produce products beyond that of any North American mill," said MaryEmily Slate, Vice President and General Manager of Nucor Steel Arkansas. "We would like to thank Governor Asa Hutchinson, our local officials and the entire Blytheville community for their support of this project."

Nucor Steel Arkansas employs 650 teammates. The addition of the specialty cold mill complex is expected to add approximately 100 jobs at an estimated average annual salary of $80,000.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Corporate News, Management Comments

Add Your Comment