CHARLOTTE, N.C., May 25, 2017 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it is investing an estimated $176 million to build a hot band galvanizing and pickling line at its sheet mill in Ghent, Kentucky. The new galvanizing line will expand Nucor Steel Gallatin's product capabilities and have an annual capacity of 500,000 tons.
"The addition of a hot band galvanizing line at Nucor Steel Gallatin supports our automotive growth strategy. This project will allow us to move into segments of the automotive market we currently do not serve," said John Ferriola, Chairman, CEO and President. "We have been growing our share of the automotive market and this project will help us continue that trend. In addition, this line will fully satisfy a key need in the marketplace for high-quality, hot-rolled galvanized steel."
"This project will enable us to provide our customers with value-added products as part of the company's long-term strategy for profitable growth," said John Farris, Vice President & General Manager of Nucor Steel Gallatin. "We are proud to make this investment in the Ghent community and the State of Kentucky. We would like to thank Governor Matt Bevin, our local officials, East Kentucky Power Cooperative and Owen Electric, our teammates and the entire community for their support."
The 72-inch galvanizing line will be the widest hot-rolled galvanizing line in North America. This new line will create synergies with Nucor's other sheet mills and increase the company's market share of coated steel in the Midwest. Once the necessary approvals are obtained, it is expected to take two years to construct the galvanizing line and begin operations.
The hot band galvanizing project will create 75 new full-time jobs. Approximately 430 teammates currently work at the mill.
Nucor and its affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (3) market demand for steel products; and (4) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2016 Annual Report on Form 10-K, Item 1A. Risk Factors. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.
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SOURCE Nucor Corporation
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