CHARLOTTE, N.C., Nov. 21, 2017 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it will build a rebar micro mill in Sedalia, Missouri, about 90 miles east of Kansas City. Following its approval by the Missouri Development Finance Board, the project was formally announced at an event with Governor Eric Greitens held at Lowell Mohler Assembly Hall. The new micro mill project represents at least $250 million in new investments and is expected to start-up in 2019 pending the final approval and award of state and local incentives as well as required permits and regulatory approvals.
"This rebar micro mill project is consistent with our long-term strategy for profitable growth and builds on our position as a low-cost producer," said John Ferriola, Chairman, CEO & President of Nucor. "Strategically positioning this micro mill in the Kansas City area will give us a sustained cost advantage over other domestic steel producers supplying rebar from outside the region."
Rebar supply to the Kansas City, upper Midwestern and Plains markets currently travels long distances, giving the micro mill in Sedalia a logistical advantage. This location will also allow the Company to take advantage of the abundant scrap supply in the immediate area provided by Nucor's scrap business, The David J. Joseph Company.
The rebar micro mill investment is expected to create 255 full-time jobs paying an average annual salary of approximately $65,000. In addition, the project will create 450 temporary construction jobs.
"We would like to thank state and local officials who have assisted us with the project, including Governor Greitens, the Missouri Department of Economic Development, the City of Sedalia, Pettis County, and Kansas City Power & Light," said Dave Sumoski, Executive Vice President of Merchant and Rebar Products. "Our bar mills have been the foundation of our company, and we believe strategically supplying underserved markets will allow our bar business to continue to generate significant value in the future. We are encouraged by the tremendous support received by the state and local community in Missouri, and Nucor has decided to pursue an additional micro mill project. Two regions are currently under consideration in the Southeastern United States for this additional project."
Nucor and its affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (3) market demand for steel products; and (4) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2016 Annual Report on Form 10-K, Item 1A. Risk Factors. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.
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SOURCE Nucor Corporation
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