Economy
Nucor Gallatin's Full Run Rate Pushed Back Again
Written by David Schollaert
January 26, 2023
Nucor Corp.’s ramp-up at its Gallatin operations are six months behind schedule, Leon Topalian, Nucor’s chair, president, and CEO, said on an earnings conference call with analysts on Thursday, Jan. 26.
“We’re about six months behind where were wanted to be on the ramp-up,” Topalian said. “However, over the last few months that team has done a phenomenal job to bring that new caster and equipment online.”
The Charlotte, N.C.-based steelmaker now expects its $650-million expansion project at Nucor Steel Gallatin in Ghent, Ky., will not reach its nameplate capacity of 3 million tons per year until the end of the second quarter.
Recall that last June Nucor completed a planned outage at the Gallatin mill related to the expansion, boosting capacity from 1.6 million tons to 3 million tons per year. The move also expanded the width of the slabs produced at Gallatin from 68 inches to 73.5 inches.
In July, the company announced the facility had produced the first coil, and ramp-up was expected over the course of Q3, hitting full rune rate capacity in Q4.
During Nucor’s third-quarter earnings call last October, it said the mill would no longer reach full run rate by the end of the year as initially expected, pushing the milestone back to Q1 2023.
It’s now been pushed back a second time.
“This was not a brownfield; this was a complete mill modernization with software and automation tying that entire complex together,” Topalian said.
“The bottom line at Gallatin, in Q2 we expect to be at full run-rate capability,” he added. “We will see how the market’s needs and demands go, and meet that demand, but we expect Gallatin to be profitable in the second quarter as well.”
Since Nucor’s initial announcement to roughly double Gallatin’s capacity back in 2018, a galvanizing line was added in 2019, and the addition of a pickle line and the tube mill, currently under construction, is expected to be operational by mid-2023.
By David Schollaert, david@steelmarketupdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_DS_headshot.png-150x150.jpg)
David Schollaert
Read more from David SchollaertLatest in Economy
Metalformers expect steady conditions in coming months
Metalformers expect economic activity to stabilize over the next three months, according to the recently released July Business Conditions Report from the Precision Metalforming Association (PMA).
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/construction.png)
Architecture Billings Index rises from 4-year low in June
The Architecture Billings Index (ABI) ticked up in June following May’s four-year low, according to the American Institute of Architects (AIA) and Deltek. While the index improved this month, it continues to indicate weak business conditions among architecture firms.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/07/FedRes.png)
Beige Book: Uncertainty to continue fueling slower economic growth
Growth in the US economy continues to be constrained. The Federal Reserve’s Beige Book report for July shows more areas reporting flat or declining economic activity than in its previous report at the end of May.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI, AISC, University of Massachusetts get ~$6.4M EPA grant
The American Iron and Steel Institute (AISI), American Institute of Steel Construction (AISC), and the University of Massachusetts at Amherst have received a grant to enhance emissions reporting for steel construction projects.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/12/empire_state_1-scaled.jpg)
Manufacturing activity in New York state continues to soften
New York state saw a continued decline in manufacturing activity in July, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York.