Nucor gives updates on new capacity coming online

He also included galvanizing lines in Crawfordsville in Indiana, and Nucor Steel Berkeley in South Carolina, along with the start-up of its West Virginia sheet mill at the end of next year.

However, Steve Laxton, EVP and CFO, said, “While these growth investments create long-term shareholder value, they also create near-term earnings headwinds.”

He noted that during the first quarter, Nucor “incurred $170 million, or $0.56 per share, in pre-operating and start-up cost.”

Bar Mill Group

Within the Bar Mill Group, Topalian said its Rebar Micro Mill in Lexington, N.C., rolled its first billet in April and is on track to produce its first heat in June.

He said commercial shipments are expected to occur in Q3’25.

The mill is set to have a capacity of 430,000 short tons (st) per year.

At its Kingman, Az., bar mill, the company expects the new melt shop to produce its first seed in June and be operational in the third quarter.

Previously just a rolling mill, the $100-million investment will provide the mill with an additional 600,000 st of annual capacity for the production of bar and wire products.

Coating facilities

Topalian said Nucor has “also made considerable headway with new coating facilities at our existing sheet mills.”

The coating complex at its Crawfordsville, Ind., sheet mill is scheduled to be completed by year’s end and will add galvanizing and pre-paint capabilities at the location, he added.

The expansion will add 300,000 st per year (stpy) of construction-grade galvanizing capacity and 250,000 stpy of pre-paint capabilities.

Topalian said the new 500,000-stpy continuous galvanizing line at Nucor’s Berkeley County sheet mill is on track for completion by mid-2026.

Towers and structures

The CEO noted that within Nucor’s towers and structures business, greenfield projects in Alabama and Indiana will start operations throughout the next nine months.

“Customers have already started to tour Alabama location and we are working through initial phases of the qualification process,” Topalian said.

He commented that the Alabama project is slated to begin operations in Q3’25 and the Indiana project is on track to begin operations in Q1’26.

The  two automated tower manufacturing plants were first announced in December 2022.

As previously reported, both plants are adjacent to Nucor’s sheet mills in Decatur, Ala., and Crawfordsville, Ind.

West Virgiinia sheet mill

Topalian said that construction of its West Virginia sheet mill will continue through 2026.

“We’re near the midpoint of construction timeline and equipment installation is well underway,” Topalian said. “We remain on schedule to commission the mill by the end of next year and look forward to supplying the markets with some of North America’s cleanest and most advanced sheet steels.”

Plans at the mill include two galvanizing lines with 500,000 stpy of automotive-grade coil capacity and 500,000 stpy of construction-grade coil capacity.

“While the economy is grappling with a lot of uncertainty and volatility, rest assured, Nucor is built for this,” Topalian said. “We have the right capabilities, the right team, and the right financial strength to preserve, regardless of the macroeconomic trends.”