Nucor Rides Steel Industry's Growth Wave with $5 Billion Worth of Projects, Including U.S. Expansions

Researched by Industrial Info Resources (Sugar Land, Texas)--Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) enjoyed solid growth in first-quarter 2019, when compared with the same period last year, as stronger prices and improved sales--particularly from the company's plate, bar and structural mills--drove the company to explore new facilities and expand existing plants. Industrial Info is tracking nearly $5 billion in active projects involving Nucor, more than 90% of which is attributed to projects in the U.S.

Click on the image at right for a graph detailing Nucor's active projects worldwide, by project type.

Nucor's steel mills reported the strongest earnings growth among the company's segments, when compared with first-quarter 2018. The company expects its steel mill performance in the second quarter will be "consistent compared to the first quarter of 2019, as weakening margins for sheet and plate mill products are expected to be offset by improving margins for structural and bar mill products," according to a press release.

Among the Nucor mills that are seeing growth is the Hickman Steel Sheet Plant in Blytheville, Arkansas, which is undergoing the $230 million addition of a steel sheet cold-rolling mill. The new unit, which is expected to finish construction in the third quarter, will produce 500,000 tons per year of advanced high-strength, high-strength low-alloy, and motor-lamination products. Nucor also is proposing an estimated $240 million galvanizing line addition at Hickman, which would produce 455,000 tons per year of steel sheet.

Last month, Nucor Chairman John Ferriola told the Congressional Steel Caucus that President Trump's 25% tariff on steel imports, which began in 2018, has been beneficial to the steel-production industry and was a major factor in the decision to expand the Hickman plant. For more information, see Industrial Info's project reports on the cold-rolling mill and galvanizing line.

Also in Arkansas, Nucor is proposing $150 million in expansions and equipment additions at the Blytheville Steel Mill in Armorel. The company aims to replace and upgrade rolling equipment at its heavy-section mill, which produces large, wide-flange and H-pile beams. A $180 million expansion of the Kankakee Steel Mill in Bourbonnais, Illinois, is under construction and set to finish toward the end of this year; it will add a 500,000-ton-per-year merchant bar-quality mill. For more information, see Industrial Info's reports on the Blytheville and Kankakee projects.

Seasonal factors and improved weather conditions are expected to benefit the steel product segment's business in nonresidential construction markets. Nucor is at work on a $250 million steel rebar micro mill in Sedalia, Missouri, which will produce 350,000 tons per year of rebar and eventually will include a spooling line to produce twist-free, compact heavy coils up to 11,000 pounds each. The company also has proposed a $12 million, three-track railway yard at the rebar mill that would provide access to freight cars and other rail vehicles. For more information, see Industrial Info's project reports on the micro mill and railway yard.

Nucor's earnings for first-quarter 2019 were reported to be $501.8 million, a 41.7% increase from the same period last year. Sales stood at $6.1 billion, a 9.5% increase.

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/.