Steel Products

Nucor Sees Opportunities Beyond Steelmaking: Topalian
Written by Ethan Bernard
July 26, 2023
Nucor’s growth strategy goal “is not simply about being the biggest steel company,” Nucor chair, president and CEO Leon Topalian said.
“As we evaluate and pursue new, ‘expand beyond’ platforms, we’re focused on opportunities that leverage our core capability as an efficient industrial manufacturer and are aligned with steel-intensive mega-trends or themes,” Topalian said.
He made the comments during a second-quarter earnings conference call with analysts on Tuesday, July 25. The “expand beyond” is in reference to Nucor’s stated mission of growing its core business and expanding beyond that while maintaining the company’s culture.
Topalian noted that recent passing of legislation to release federal funding in infrastructure and in technology is “helping to drive these megatrends, and Nucor intends to capitalize on them further to grow and diversify our earnings potential.”
One example: Nucor’s purchase of CHI Overhead Doors business for $3 billion in May 2022. As for other potential targets, Topalian said “there are a lot of irons in the fire” but declined to specify any sectors.
Regarding that diversification, Nucor is looking for businesses “that generate more consistent through-cycle earnings profiles than the traditional cyclicality of the steel business,” Topalian said. But he also stressed that Nucor did not want to become a “conglomerate.”
And while steel is still cyclical, there have been “substantive shifts” in the industry, Topalian said.
“We’ve seen consolidation. We’ve seen rationalization, and we’ve seen a massive change in trade,” he said. That has created “outcomes that are much more advantageous, that are stabilizing those earnings.”
He added: “So we expect peaks to be much higher. And, quite frankly, we don’t expect the troughs that we saw pre-pandemic to occur for us.”
Another important factor is trade policy. “The overcapacity situation in the world will never, ever be gone. Our advocacy has got to remain vigilant,” Topalian said. He praised the work of Commerce Secretary Gina Raimondo and US Trade Representative Katherine Tai in maintaining that vigilance.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Products
Global steel production falls to near two-year low in September
World crude steel output declined for the fourth-consecutive month in September, slipping 3% from August to an estimated 141.8 million metric tons (mt), according to the latest figures from the World Steel Association (worldsteel).
Market sources say regional activity is dictating plate demand
Demand for plate on the spot market remains soft by comparison to years past. However, this week regional demand variations grew more pronounced.
Battery #14 at USS Clairton to restart on Oct. 23
U.S. Steel plans to restart battery #14 at the Clairton Coke Works plant on Thursday, ending its idling period. Battery #14 was hot idled following the explosion at coke oven batteries 13 and 14 on Aug. 11. The Mon Valley Works Clairton plant has completed the necessary repairs. It expects the battery to restart during […]
Findings from Clairton investigations prompt USS to revise safety protocols
U.S. Steel (USS) said it’s been strengthening its safety protocols as findings from investigations into the causes of a deadly explosion at USS Clairton Coke Works on Aug. 11 materialize. The Pittsburgh, Pa.-headquartered steel producer stated that an independent investigation conducted by the Environmental Design & Testing Corp (EDT) produced findings aligned with the company’s […]
FabArc Steel Supply completes projects in Mississippi, Georgia
FabArc Steel Supply announced this week the completion of two large-scale projects in Georgia and Mississippi.
