Nucor said the new, full-range merchant bar quality mill will be capable of producing 500,000 tons annually. It will allow the company to optimize melt capacity at the facility and will take advantage of infrastructure that’s already in place there. 
 
“It will also take advantage of an abundant scrap supply in the region, as well as the company's commercial footprint in the central United States,” Nucor said in a statement. 

Nucor announced in September that it was planning to expand its merchant bar capacity, but hadn't yet decided where to expand. At the time, the decision was down to the Illinois plant and its Ohio bar mill, Nucor said. 
 
“The Midwest region is one of the largest markets for MBQ products, and Nucor is ideally situated to take advantage of existing operating and commercial capabilities to meet this regional demand,” the company said.

The project is expected to take two years to complete. 

"This new MBQ mill is right in line with our long-term strategy for profitable growth. It takes advantage of our position as a low-cost producer to displace tons currently being supplied by competitors outside the region. It also builds on our market leadership position by further enhancing our product offerings of merchant bar, light shapes and structural angle and channel in markets in the central U.S.," said Nucor chairman and chief executive John Ferriola.