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Researched by Industrial Info Resources (Sugar Land, Texas)--One of the big news items in Kentucky on Wednesday was Nucor Corporation's (NYSE:NUE) (Charlotte, North Carolina) announcement that it will build its $1.35 billion steel plate mill in Brandenburg. Kentucky was one of four states (the others being Indiana, Ohio and West Virginia) under consideration for the mill, which will bring 400 permanent jobs with an average annual salary of $72,000.
Industrial Info is tracking nearly $4.6 billion in active U.S. projects by Nucor, including more than $2.2 billion in the Blue Grass State.
Click on the image at right for a graph showing Nucor's project activity in the top 10 states.
Kentucky Governor Matt Bevin said in a press statement that the project ranks as one of the state's single-largest investments. To be located in the Buttermilk Falls Industrial Park along the Ohio River in Brandenburg, the 1.5 million-square-foot facility will be capable of producing 1.2 million tons per year of steel plate products.
"Kentucky is an excellent location for this mill, right in the center of America's largest plate-consuming region," Nucor Chief Executive Officer John Ferriola said in a press release. "Our acquisition of the Gallatin sheet mill in Ghent, Kentucky, five years ago has been a tremendous success, and we are pleased to add a second mill in the state."
The new mill will produce cut-to-length, coiled, heat-treated and discrete plate ranging from 60 to 160 inches wide, and in gauges from 3/16 of an inch to 14 inches, according to Nucor, adding its location on the Ohio River will give the company logistical advantages in sourcing raw materials and serving customers throughout the Midwest. Construction of the mill is planned to kick off by yearend 2019, with completion in early 2022. Nucor currently operates plate mills in North Carolina, Alabama and Texas. For more information on the Kentucky steel mill project, see Industrial Info's project report.
The Kentucky Economic Development Finance Authority voted on Wednesday to offer $40 million in state tax incentives to Nucor. The governor's office noted that in 2018, the company announced a phase II expansion at Nucor Steel Gallatin, a mill producing flat-rolled coils in Ghent. That project will nearly double the mill's annual capacity to about 3 million tons and allow the mill to produce coils up to 73 inches wide. Construction is planned to kick off in early 2020, with completion in in mid-2021. For more information, see Industrial Info's project report.
Phase I of the Gallatin plant's expansion, announced in 2017, includes a new building to house galvanizing and pickling lines. That phase is expected to wrap up construction in the first half of this year. For more information, see Industrial Info's project report.
In January, Ferriola explained the rationale behind the new plate steel project to industry analysts. A variety of factors, including big drop in steel plate imports and a more benign business environment, were part of Nucor's decision to push ahead with the project, he said. For more information, see January 11, 2019, article - Nucor: Falling Imports, Better Business Environment Factor into Plans for New Steel Mill.
U.S. steel imports were down 11.5% in 2018, according to the American Iron and Steel Institute (AISI), totaling 33.7 million net tons. Meanwhile, U.S. steel mills shipped nearly 95.3 million net tons in 2018, a 4.8% increase from 2017. In announcing the location of the Kentucky project, state and company officials praised President Donald Trump for imposing steel tariffs on China, which they said have helped boost U.S. manufacturing and given incentives for industries to create new factories, according to the Louisville Courier Journal.
Nucor plans to spend $1.8 billion on capital projects this year, compared with $1 billion in 2018. For more information, see January 30, 2019, article - Steelmaker Nucor Boosts 2019 Capex to $1.8 Billion.
This year, Nucor plans to kick off construction of a 350,000-ton-per-year steel rebar micromill in Sedalia, Missouri, with completion in 2020. For more information, see Industrial Info's project report.
Nucor also plans to begin work in the second quarter of this year at its direct reduced iron plant in Convent, Louisiana. This includes a raw materials handling and storage project, and upgrades to the process gas heater. Construction is expected to be completed in early 2020. For more information, see Industrial Info's project reports on the materials handling and storage project, and the process has heater upgrades.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking nearly $4.6 billion in active U.S. projects by Nucor, including more than $2.2 billion in the Blue Grass State.
Kentucky Governor Matt Bevin said in a press statement that the project ranks as one of the state's single-largest investments. To be located in the Buttermilk Falls Industrial Park along the Ohio River in Brandenburg, the 1.5 million-square-foot facility will be capable of producing 1.2 million tons per year of steel plate products.
"Kentucky is an excellent location for this mill, right in the center of America's largest plate-consuming region," Nucor Chief Executive Officer John Ferriola said in a press release. "Our acquisition of the Gallatin sheet mill in Ghent, Kentucky, five years ago has been a tremendous success, and we are pleased to add a second mill in the state."
The new mill will produce cut-to-length, coiled, heat-treated and discrete plate ranging from 60 to 160 inches wide, and in gauges from 3/16 of an inch to 14 inches, according to Nucor, adding its location on the Ohio River will give the company logistical advantages in sourcing raw materials and serving customers throughout the Midwest. Construction of the mill is planned to kick off by yearend 2019, with completion in early 2022. Nucor currently operates plate mills in North Carolina, Alabama and Texas. For more information on the Kentucky steel mill project, see Industrial Info's project report.
The Kentucky Economic Development Finance Authority voted on Wednesday to offer $40 million in state tax incentives to Nucor. The governor's office noted that in 2018, the company announced a phase II expansion at Nucor Steel Gallatin, a mill producing flat-rolled coils in Ghent. That project will nearly double the mill's annual capacity to about 3 million tons and allow the mill to produce coils up to 73 inches wide. Construction is planned to kick off in early 2020, with completion in in mid-2021. For more information, see Industrial Info's project report.
Phase I of the Gallatin plant's expansion, announced in 2017, includes a new building to house galvanizing and pickling lines. That phase is expected to wrap up construction in the first half of this year. For more information, see Industrial Info's project report.
In January, Ferriola explained the rationale behind the new plate steel project to industry analysts. A variety of factors, including big drop in steel plate imports and a more benign business environment, were part of Nucor's decision to push ahead with the project, he said. For more information, see January 11, 2019, article - Nucor: Falling Imports, Better Business Environment Factor into Plans for New Steel Mill.
U.S. steel imports were down 11.5% in 2018, according to the American Iron and Steel Institute (AISI), totaling 33.7 million net tons. Meanwhile, U.S. steel mills shipped nearly 95.3 million net tons in 2018, a 4.8% increase from 2017. In announcing the location of the Kentucky project, state and company officials praised President Donald Trump for imposing steel tariffs on China, which they said have helped boost U.S. manufacturing and given incentives for industries to create new factories, according to the Louisville Courier Journal.
Nucor plans to spend $1.8 billion on capital projects this year, compared with $1 billion in 2018. For more information, see January 30, 2019, article - Steelmaker Nucor Boosts 2019 Capex to $1.8 Billion.
This year, Nucor plans to kick off construction of a 350,000-ton-per-year steel rebar micromill in Sedalia, Missouri, with completion in 2020. For more information, see Industrial Info's project report.
Nucor also plans to begin work in the second quarter of this year at its direct reduced iron plant in Convent, Louisiana. This includes a raw materials handling and storage project, and upgrades to the process gas heater. Construction is expected to be completed in early 2020. For more information, see Industrial Info's project reports on the materials handling and storage project, and the process has heater upgrades.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
