Skip to comments.Nucor to set up plate mill in U.S. Midwest for $1.35 billion
Posted on 01/07/2019 4:32:28 AM PST by machman
.....will be fully operational in 2022, would produce 1.2 million tons a year of steel plate products and create about 400 full-time jobs.....
(Excerpt) Read more at finance.yahoo.com ...
“Tax reform, continued improvements to our regulatory approach and strong trade enforcement are giving businesses like ours the confidence to make long-term capital investments here in the United States,” Chief Executive Officer John Ferriola said in a statement.
No longer treating Welfare as an industry.
Komatsu Milwaukee, currently in the old Joy Global/P&E plant, is building a new mega-facility a few miles away and will be completed sometime in the 2023 time frame.
A 1.35 Billion gamble on Trump’s economic policies continuing and the China trade imbalance will drop.
I wonder of that confidence will remain after g the Pelosi House gets up and running? The 2018 election has cast the future in doubt.
China has been screwing with us for years.
1.3 Billion dollar factory with only 400 jobs? There must a lot of robotic automation involved here.
Too early. Please add a “be.”
Have you ever been in a plate mill?
It’s the equipment costs.
CHARLOTTE, N.C., Jan. 7, 2019 /PRNewswire/ — Nucor Corporation (NYSE: NUE) today announced plans to build a state-of-the-art plate mill in the U.S. Midwest. Nucor’s Board of Directors has approved an investment of $1.35 billion to build the mill, which is expected to be fully operational in 2022 and will be capable of producing 1.2 million tons per year of steel plate products. The project is expected to create approximately 400 full-time jobs.
“This investment is consistent with our drive to continue delivering sustainable, profitable growth and superior returns for shareholders,” said John Ferriola, Chairman, CEO & President of Nucor. “Together with the significant share repurchases completed in 2018, the Board’s decision to fund this high-return opportunity demonstrates our commitment to balanced capital allocation. We have a strong foundation to build upon as we advance our goal of leading in every market in which we compete.”
Leon Topalian, Executive Vice President of Beam and Plate products, said, “By building this state-of-the-art plate mill in the Midwest the largest plate-consuming area in the United States we will enhance our ability to serve our customers in the region while also furthering our goal of meeting all the steel needs of our customers around the country. We expect to select a site for the new mill early this year. Our team is poised and ready to take the next step in advancing our position in steel plate products.”
The new plate 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 in thickness; enabling Nucor to supply plate products that the Company does not currently offer. Nucor currently operates plate mills in North Carolina, Alabama and Texas.
“This administration is taking the decisive and meaningful actions that American manufacturers need to compete on a level playing field,” Ferriola said. “Tax reform, continued improvements to our regulatory approach and strong trade enforcement are giving businesses like ours the confidence to make long-term capital investments here in the U.S. that create jobs and ensure our success for decades to come.”
That’s the art of business -— Making irrevocable decisions based on insufficient information.
this high-return opportunity
But theres no future in steel! The left told me!
Back in the late 1990s when I was writing “The Entrepreneurial Adventure: A History of American Business” (later reprinted as “American Entrepreneur”), I was researching Nucor and called the company headquarters for an appointment to interview the president, Ken Iverson. I got a secretary and expected to be given a calendar date of two or three months out to call back. Instead I got a beep: “Ken Iverson.”
I was stunned. In one call I did an interview with the president of the third largest steel company in America, while getting a meeting with the president of my own (fairly dinky) little college too months!
Nucor, at the time, had a manager-to-plant ratio of .9 (!!!)
My university had three provosts, several assistant provosts, five deans, and at least five assistant deans for a student body of 6,000 regular students.
And people wonder why universities are so inept.
Yep lots of automation. That is why they refer to it as “state of the art” in the article I also bet the cost of these machines that move the plate is not cheap.
Interesting insight! Thanks for posting.
Is this ‘wall steel’ they will be producing?
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