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Researched by Industrial Info Resources (Sugar Land, Texas)--Executives with Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) on Thursday gave an update on the steel producer's key growth projects.
Pre-operating and start-up costs related to Nucor's growth projects were approximately $82 million in the first quarter of 2023, compared with approximately $62 million in the first quarter of 2022, the company reported in its first-quarter 2023 earnings report. Executives estimate Nucor's 2023 capital expenditures will total $3 billion, about two-thirds of which will be allocated toward profitable growth projects. For more information, see January 27, 2023, article - Nucor Upbeat About U.S. Steel Market in 2023.
Industrial Info is tracking 46 capital projects from Nucor, worth $5.68 billion.
Click on the image at right for a graph showing Nucor project spending in the top five states.
During the company's earnings conference call, Chief Executive Officer Leon Topalian noted the 3 million-ton-per-year grassroot sheet steel mill in Apple Grove, West Virginia has received all state permits and is working to receive one federal permit. Construction is expected to kick off this May. 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 Project Database can click here for the project report.
Also noted was Nucor's newly expanded steel operations in Gallatin, Kentucky, which produced 365,000 tons of steel in the first quarter and is trending toward a full run-rate production of 2.8 million tons per year by the end of the second quarter. Topalian said he expects the operation to be profitable in the second quarter. Subscribers to Industrial Info's GMI Metals & Minerals Plant Database can click here for the plant profile.
During the first quarter, Nucor also continued to ramp up production of its Brandenburg, Kentucky, caster and rolling steel plate mill, Topalian said. Nucor is targeting 500,000 tons of steel production from the Brandenburg caster and rolling mill this year, which would begin turning a profit by the fourth quarter. Subscribers can click here for the plant profile.
Also planned for a second-quarter construction kickoff is a 500,000-ton-per-year steel mill galvanizing line addition in Huger, South Carolina. The new line will produce galvanized steel up to 72 inches wide and will expand the manufacturing of corrosion-resistant products. Completion is planned for mid-2025. Subscribers can click here for the project report.
In December 2022, Nucor said it will build another galvanizing line at its California Steel Industries, Incorporated (CSI) mill in Fontana, California.
"The new galvanizing line will serve construction end markets in the western United States and is expected to have an annual capacity of 400,000 tons," the company said in a press release. "With the addition of this new line, CSI will have a total hot dip galvanizing capacity of 1.2 million tons per year."
Subscribers can click here for the Fontana galvanizing line report.
Nucor reported net earnings of $1.14 billion for first-quarter 2023, down from $2.1 billion in first-quarter 2022.
Sales for the just-ended quarter totaled $8.71 billion, 17% lower than $10.49 billion reported in the first quarter of 2022. The company noted that the average sales price per ton in the first quarter of this year decreased 18% compared with the first quarter of 2022. Total steel mill shipments in the just-ended quarter increased 4% compared with the first quarter of 2022.
"We had a very strong quarter, driven by solid performance in our steel products segment and increased demand for steel at our mills," Topalian said in the company's earnings press release.
"Demand from nonresidential construction, our largest end market, continues to be robust driven by strength in infrastructure and manufacturing investment," Topalian continued. "Average steel mill utilization rates and profit margins were both up in the first quarter compared to the fourth quarter, with sheet and plate mills seeing some of the largest gains. This, coupled with year-over-year gains in automotive and stability in energy, gives us confidence that 2023 will be another very profitable year for Nucor."
Subscribers can click here for all of the project reports cited 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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
Pre-operating and start-up costs related to Nucor's growth projects were approximately $82 million in the first quarter of 2023, compared with approximately $62 million in the first quarter of 2022, the company reported in its first-quarter 2023 earnings report. Executives estimate Nucor's 2023 capital expenditures will total $3 billion, about two-thirds of which will be allocated toward profitable growth projects. For more information, see January 27, 2023, article - Nucor Upbeat About U.S. Steel Market in 2023.
Industrial Info is tracking 46 capital projects from Nucor, worth $5.68 billion.
During the company's earnings conference call, Chief Executive Officer Leon Topalian noted the 3 million-ton-per-year grassroot sheet steel mill in Apple Grove, West Virginia has received all state permits and is working to receive one federal permit. Construction is expected to kick off this May. 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 Project Database can click here for the project report.
Also noted was Nucor's newly expanded steel operations in Gallatin, Kentucky, which produced 365,000 tons of steel in the first quarter and is trending toward a full run-rate production of 2.8 million tons per year by the end of the second quarter. Topalian said he expects the operation to be profitable in the second quarter. Subscribers to Industrial Info's GMI Metals & Minerals Plant Database can click here for the plant profile.
During the first quarter, Nucor also continued to ramp up production of its Brandenburg, Kentucky, caster and rolling steel plate mill, Topalian said. Nucor is targeting 500,000 tons of steel production from the Brandenburg caster and rolling mill this year, which would begin turning a profit by the fourth quarter. Subscribers can click here for the plant profile.
Also planned for a second-quarter construction kickoff is a 500,000-ton-per-year steel mill galvanizing line addition in Huger, South Carolina. The new line will produce galvanized steel up to 72 inches wide and will expand the manufacturing of corrosion-resistant products. Completion is planned for mid-2025. Subscribers can click here for the project report.
In December 2022, Nucor said it will build another galvanizing line at its California Steel Industries, Incorporated (CSI) mill in Fontana, California.
"The new galvanizing line will serve construction end markets in the western United States and is expected to have an annual capacity of 400,000 tons," the company said in a press release. "With the addition of this new line, CSI will have a total hot dip galvanizing capacity of 1.2 million tons per year."
Subscribers can click here for the Fontana galvanizing line report.
Nucor reported net earnings of $1.14 billion for first-quarter 2023, down from $2.1 billion in first-quarter 2022.
Sales for the just-ended quarter totaled $8.71 billion, 17% lower than $10.49 billion reported in the first quarter of 2022. The company noted that the average sales price per ton in the first quarter of this year decreased 18% compared with the first quarter of 2022. Total steel mill shipments in the just-ended quarter increased 4% compared with the first quarter of 2022.
"We had a very strong quarter, driven by solid performance in our steel products segment and increased demand for steel at our mills," Topalian said in the company's earnings press release.
"Demand from nonresidential construction, our largest end market, continues to be robust driven by strength in infrastructure and manufacturing investment," Topalian continued. "Average steel mill utilization rates and profit margins were both up in the first quarter compared to the fourth quarter, with sheet and plate mills seeing some of the largest gains. This, coupled with year-over-year gains in automotive and stability in energy, gives us confidence that 2023 will be another very profitable year for Nucor."
Subscribers can click here for all of the project reports cited 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 more than 200,000 current and future projects worth $17.8 Trillion (USD).
