Nucor (NUE) to Build Tube Mill in the Midwest
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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 $164 million investment project is expected to be in operation in two years.
"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.
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