Steelmaker Nucor Discusses Growth Projects

Researched by Industrial Info Resources (Sugar Land, Texas)--Executives with Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) on Monday gave an update on the steel producer's growth projects.

According to the company's second-quarter 2023 earnings report, pre-operating and start-up costs related to the company's growth projects were approximately $90 million in the second quarter of 2023, compared with approximately $82 million in the first quarter. Nucor expects 2023 capital expenditures (capex) will total $3 billion.

During the company's earnings conference call, Chief Executive Officer Leon Topalian said the company has completed "slightly more than 50%" of its $10 billion capex plan to grow its steelmaking operations. "Over the next several years, we'll continue to execute on our capex plan to better position Nucor with more value-added steelmaking capabilities," he added.

Chief Financial Officer Steve Laxton noted the company has spent about $1 billion of its $3 billion capex for 2023, on the largest project the company has: the 3 million-ton-per-year grassroot sheet steel mill in Apple Grove, West Virginia. "We're about to enter a phase of construction there," he said.

The mill will produce hot-rolled sheet products, with downstream processing including a tandem cold mill, annealing capabilities and initially two galvanizing lines. Completion is planned for early 2026. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Industry Project Database can click here for the project report.

Also noted was Nucor's newly expanded steel operations in Gallatin, Kentucky, which reached a full run-rate production of 2.8 million tons per year in June. Topalian said the operation saw increasing levels of profitability in each month of the quarter. Subscribers to Industrial Info's GMI Metals & Minerals Plant Database can click here for the plant profile.

During the most recent quarter, Nucor ramped up production of its caster and rolling steel plate mill Brandenburg, Kentucky, Topalian said. Nucor is targeting about 300,000 tons of steel production from the mill in the second half of the year, which would begin turning a profit by year-end. Subscribers can click here for the plant profile.

Topalian also said construction of Nucor's grassroot steel rebar micro mill in Lexington, Kentucky kicked off in May and is planned for completion by early 2025. The 430,000-ton-per-year mill will serve the Mid-Atlantic and Southeast regions. Click here to read a detailed project report.

Environmental, social and governance (ESG) initiatives also are driving Nucor's project activity. In June the steelmaker announced a partnership with Exxon Mobil Corporation (NYSE:XOM) (Irving, Texas) to capture 800,000 metric tons per year of carbon dioxide (CO2) emissions from Nucor's direct reduced iron (DRI) plant in Convent, Louisiana. ExxonMobil also will transport and store the CO2. Subscribers can click here to read a detailed project report. For more information, see Industrial Info's June 5, 2023, article - ExxonMobil Reaches CCS Deal with Nucor Steel.

Nucor's second-quarter net earnings of $1.46 billion were up from $1.14 billion for the first quarter.

Second-quarter sales totaled $9.52 billion, 9% higher than $8.71 billion reported in the first quarter. The company noted that the average sales price per ton in the second quarter increased 7% compared with the first quarter.

Industrial Info is tracking 47 capital projects from Nucor, worth $5.78 billion. Subscribers can click here for a full list of Nucor's active capital project activity.

Subscribers can click here to see reports for all of the projects discussed in this article and click here for the plant profiles.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).