Steelmaker Nucor Extends Buildout with New Galvanizing Lines

Researched by Industrial Info Resources (Sugar Land, Texas)--While U.S. steel prices have come down somewhat from the extraordinarily high prices seen in 2020 and 2021, they remain elevated from their pre-pandemic levels, and U.S. steel producers are planning or are underway with grassroot plants, line additions and modernizations throughout the U.S. to expand production. Industrial Info is tracking more than $24 billion worth of active steel projects in the U.S. One of the latest project announcements comes from Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina), which has announced that it will construct two new galvanizing lines in South Carolina and the western U.S.

The announcement comes on the heels of the company completing a galvanizing line addition at its Hickman plant in Blytheville, Arkansas, which kicked off in 2019 and was completed early this year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for the Hickman project report.

Speaking of the new lines, Nucor Chief Executive Officer Leon Topalian said in a press release, "These investments support our strategy of shifting our mix to higher margin value-added products and capitalizing on sustainability trends that are driving opportunities for Nucor."

The new galvanizing line at the Berkeley mill in South Carolina will have an annual capacity of approximately 500,000 tons of steel up to 72 inches wide. Startup is expected in mid-2025, putting the start of construction several months out. The project, known as Project Kettle, is expected to cost about $425 million. Subscribers can click here for more details. The new line at the Berkeley plant will be Nucor's eighth wholly owned galvanized line.

Also in Nucor's project announcement were plans for another galvanizing line in the western U.S., although no specific location was named, with "details to be announced at a future date." Subscribers can click here for more details.

Nucor already is underway with a galvanizing line addition at its minimill near Decatur, Alabama, which is expected to begin operations next year, increasing the mill's production from 3.2 million tons per year to 3.6 million tons per year. Also at the Decatur mill, Nucor is at work on its melt shop, adding a third ladle metallurgical furnace, new transformers and casting segments. Subscribers can click here for the report on the galvanizing line and here for the report on the melt shop additions.

But that's not all Nucor is up to by a long shot. The company presently operates five sheet mills (all equipped with galvanizing lines) throughout the U.S., with an annual production capacity of 13 million tons per year. Nucor is at work on sixth sheet mill in Apple Grove, West Virginia, in the west of the state near the Ohio border. Upon completion, which is expected in 2024, the mill will add 3 million tons per year of capacity, producing galvanized steel, cold-rolled coil, hot-rolled coil, and pickled and oiled sheet steel. Subscribers can click here for more details.

In Brandenburg, Kentucky, Nucor is at work on a grassroot steel plate mill, which is expected to be completed toward the end of this year. The 1.2 million-ton-per-year mill will produce cut-to-length, coiled, heat-treated and discrete plates. In addition, a rail loop around the facility is being constructed to facilitate loading and unloading of freight cars and other railway vehicles. Subscribers can click here for the report on the steel plate mill and here for rail loop report.

Other potential Nucor projects include a grassroot steel rebar micromill in the eastern U.S. The plant would be Nucor's third rebar micromill and produce product primarily for the construction of roads, buildings, sidewalks and other structures. Construction could begin as early as next year, for completion in 2024. Subscribers can click here for the full report.

Subscribers can click here for all project reports mentioned in this article, and click here for all related 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).