Steel Mills
Nucor shuttering Chicago tubular facility
Written by Ethan Bernard
September 30, 2024
Nucor plans to close its Nucor Tubular Products (NTP) Chicago facility and will lay off 47 workers.
Layoffs will begin on Wednesday, Nov. 27, according to a WARN Notice filed with the state of Illinois.
A Nucor spokeswoman confirmed on Monday the Charlotte, N.C.-based steelmaker is restructuring its tubular products business. This includes ending operations at its Chicago production facility.
“The hollow structural steel (HSS) tube market has evolved in recent years, particularly in the smaller-size segment produced at the NTP Chicago facility,” the spokeswoman said in a statement to SMU on Monday.
She noted that as part of the company’s long-term growth strategy, Nucor recently opened a “state-of-the-art tube facility” in Kentucky.
“This new facility, along with our existing NTP facilities in Illinois and Alabama, enables us to produce a broader range of products,” the spokeswoman added.
Nucor plans to maintain a Nucor Tubular Products sales and administrative office in the Chicago area.
“We are working with affected production teammates to find other opportunities within our company,” the spokeswoman said.
Background
The Chicago plant was opened in 1972 as Independence Tube Corp.’s first location, according to Nucor’s website.
Recall that Nucor acquired Independence Tube in 2016 for $435 million. Independence was then a leading independent manufacturer of hollow structural sections (HSS), a type of steel tubing widely used in construction.
Nucor went on to acquire other independent steel tube producers. They included Birmingham, Ala.-based Southland Tube (2016 for $130 million), Republic Conduit (2016 for $335 million), and Hannibal Industries (2021 for $370 million).
One of the goals of that $1.27-billion buying spree was to provide a value-added home to hot-rolled coil produced by Nucor’s steel mills.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Mills
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.