CHARLOTTE, N.C., Aug. 30, 2022 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it will invest $200 million over a 5-year period in mill modernization projects at its Nucor Steel Berkeley division located in Huger, South Carolina. Pending permit and regulatory approvals, a portion of the capital investment will include the construction of a new air separation unit ("ASU") for the purpose of supplying industrial gases for the mill's steelmaking operations.
When complete, the ASU will be operated by UIG LLC, a Nucor wholly owned subsidiary, that specializes in industrial gas supply. Nucor Steel Berkeley is currently supplied with industrial gases under a long-term supply agreement. This project will allow Nucor through UIG to produce and supply all the gases needed for the steel mill from the new Nucor owned facility, both now and into the future.
"Nucor acquired UIG in 2019 so that we would have the capability to build and operate our own air separation units, giving us an alternative to long term service contracts with outside providers," said Mike Lee, Vice President and General Manager of Nucor Steel Berkeley. "We are proud of our company's long-time partnership with the State of South Carolina, and we are excited to continue to invest in the state where Nucor first began operating nearly 60 years ago."
The State of South Carolina provided the ASU project with a grant issued by the SC Department of Commerce Coordinating Council for Economic Development, as well as a grant from the state's utility provider, Santee Cooper. Nucor and Berkeley County also entered into a fee-in-lieu of tax agreement.
Nucor Steel Berkeley produces up to 3.5 million tons of flat-rolled sheet and structural steel per year for a myriad of industries, including agriculture, automotive and appliance, construction, energy generation and transmission, oil and gas, heavy equipment, infrastructure, and transportation. The facility employs approximately 1000 teammates.
About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; 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 which we expect will or may occur in the future and may impact our business, financial condition and results of operations. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. 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 pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties surrounding the global economy, including excess world capacity for steel production, inflation and interest rate changes; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; and (14) the impact of the COVID-19 pandemic and any variants of the virus. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2021. 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, except as may be required by applicable law.
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SOURCE Nucor Corporation
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