Nucor’s Capital Spend Is About to Rise
07/29/2024 - Nucor Corp. in June marked the opening of its new Gallatin, Ky., tube mill and is looking to bring a number of other, major capital projects across the finish line over the next two years.
“The next two years will likely be our most capital-intensive with several active construction projects occurring simultaneously,” Nucor chief executive Leon Topalian said during the company’s second-quarter earnings call last week.
Topalian said Nucor expects to begin ramping up its Lexington, N.C., rebar micro-mill in the first quarter of 2025. Following that will be the start of two highly automated utility tower manufacturing plants serving the electrical transmission and telecommunications markets.
Following that, Nucor expects to bring on new finishing capabilities, including a new galvanizing line and paint line at its Crawfordsville, Ind., plant in late 2025 and a second galvanizing line at Nucor Steel–Berkeley in South Carolina in the middle of 2026.
The Crawfordsville project is a US$290 million project that includes a 300,000-ton, construction-grade continuous galvanizing line and a 250,000-ton paint line. The Berkeley project is a US$425 million investment that entails installation of a 72-inch galvanizing line. With an annual capacity of around 500,000 tons, the line will serve the automotive and consumer durables markets.
Nucor’s largest current project, its West Virginia sheet mill, will serve customers in the Midwest and Northeast once construction is completed in late 2026. A 3-million-ton mill, the facility will be equipped to produce 84-inch sheet and will include a 76-inch tandem cold mill and two galvanizing lines.
“It’s not about adding capacity, it's about a differentiated capability set for our customers, while doubling the through-cycle earnings potential for Nucor,” Topalian said.
That includes the Gallatin tube mill, which will provide a new outlet for its Gallatin sheet mill. The tube mill is designed to annually produce 250,000 tons of hollow structural sections, mechanical steel tubing and galvanized solar torque tube.
Topalian said Nucor expects to begin ramping up its Lexington, N.C., rebar micro-mill in the first quarter of 2025. Following that will be the start of two highly automated utility tower manufacturing plants serving the electrical transmission and telecommunications markets.
Following that, Nucor expects to bring on new finishing capabilities, including a new galvanizing line and paint line at its Crawfordsville, Ind., plant in late 2025 and a second galvanizing line at Nucor Steel–Berkeley in South Carolina in the middle of 2026.
The Crawfordsville project is a US$290 million project that includes a 300,000-ton, construction-grade continuous galvanizing line and a 250,000-ton paint line. The Berkeley project is a US$425 million investment that entails installation of a 72-inch galvanizing line. With an annual capacity of around 500,000 tons, the line will serve the automotive and consumer durables markets.
Nucor’s largest current project, its West Virginia sheet mill, will serve customers in the Midwest and Northeast once construction is completed in late 2026. A 3-million-ton mill, the facility will be equipped to produce 84-inch sheet and will include a 76-inch tandem cold mill and two galvanizing lines.
“It’s not about adding capacity, it's about a differentiated capability set for our customers, while doubling the through-cycle earnings potential for Nucor,” Topalian said.
That includes the Gallatin tube mill, which will provide a new outlet for its Gallatin sheet mill. The tube mill is designed to annually produce 250,000 tons of hollow structural sections, mechanical steel tubing and galvanized solar torque tube.
