Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/32ba8ab79e082adc6932d030ea9968ca.jpg)
Eyeing Renewables, Nucor Urges Passage of Infrastructure Bill
Written by Michael Cowden
July 22, 2021
One of the largest expansions in Nucor’s history – its $1.35 billion plate mill in Kentucky – is poised to come online at an opportune time should Congress pass a bipartisan infrastructure spending bill.
The Charlotte, N.C.-based steelmaker anticipates the mill will be commissioned in late 2022 despite some delays in equipment deliveries, company executives said.
And the mill’s location in Brandenburg, Ky., just across the Ohio River from Indiana, means it’s well positioned to serve not only traditional plate-intensive markets in the Midwest but also growth sectors such as offshore wind energy – a potential focus of infrastructure spending.
“We urge Congress to make good on the recent bipartisan framework reached in the Senate and to come together to pass a significant infrastructure funding bill,” Nucor President and CEO Leon Topalian said during an earnings conference call on Thursday.
Nucor estimates that every $100 billion in infrastructure spending equates to approximately five million tons in increased steel demand in the U.S.
An attempt to pass a $1 trillion infrastructure bill in the Senate failed by a narrow margin, 51-49, on Wednesday.
“We are encouraged that the president and members from both parties continue to focus on this issue,” Topalian said.
As for other big projects on the flat rolled side, Nucor aims to complete a hot-rolled coil expansion at its sheet mill in Gallatin, Ky., by the end of the year. It also plans to complete within the same timeframe upgrades to its sheet mill in Hickman, Ark., that will make the facility the first electric-arc furnace (EAF) mill to offer a full suite of generation three, advanced high-strength steels for the automotive sector, company executives said.
Nucor sees automotive as a growth market in the medium term as automakers catch up to production lost because of the chip shortage, as automotive dealers look to replenish “staggeringly low” inventories, and as rental car companies try to rebuild fleets liquidated during the pandemic. Longer term, the company sees opportunity from auto OEMs looking to source greener steel.
“Our performance today is what many of our competitors around the global are aspiring to achieve by 2030, ‘40, ‘50 and beyond. And compared to many of our integrated competitors, our starting point is already better than their near and intermediate goals,” Topalian said.
Nucor currently sells approximately 1.5 million tons per year into the automotive sector, and the company wants to double that figure in the next few years, he said.
And Nucor isn’t looking to grow just in the traditional steel markets it has targeted for the last 50 years. It’s also looking to gain a foothold in growth markets – such as renewable energy and climate-controlled warehousing. The latter market critical to the booming e-commerce and data storage sectors.
“It’s a focus on moving into markets that are truly growing,” Topalian said. “Steel is a cyclical industry. And what we see in the renewable space, what we see in the green economy and the digital economy, is a fast growing … market opportunity.”
That’s the logic behind Nucor’s recent $370 million acquisition of Hannibal Industries as well as its $1-billion acquisition of Cornerstone Building Brand’s insulated metal panels (IMP) business. Both businesses are key suppliers to the warehouse sector.
“Our mission is to grow the core, expand beyond and live the culture,” Topalian said.
The questions about potential M&A came after Nucor reported second quarter earnings of $1.51 billion, a new all-time record for the company.
By Michael Cowden, Michael@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_MC_headshot-150x150.png)
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.