Nucor to Build Rebar Micro Mill in Florida
CHARLOTTE, N.C. -- Nucor Corporation (NYSE: NUE) announced that it will build a rebar micro mill in Frostproof, Florida, which is located in Polk County. This is a $240 million investment and is the second rebar micro mill Nucor is constructing. In November 2017, Nucor announced a rebar micro mill project in Sedalia, Missouri.
"Nucor has always focused on growing our business to better serve our customers. We are building this rebar micro mill in a great and growing market where demand is strong and there is currently an abundant supply of scrap, a good portion of which is handled by our scrap business, The David J. Joseph Company," said John Ferriola, Chairman, CEO & President of Nucor Corporation.
"Consistent with our planned strategy of being a low-cost producer, this micro mill will give us a cost advantage over our competitors who are shipping rebar into the region from long distances."
The rebar micro mill is expected to employ approximately 250 people and pay an average annual salary of $66,000. The micro mill will have an estimated annual capacity of 350,000 tons and construction is expected to take two years, pending permit and regulatory approvals.
"We would like to thank the many state and local officials, leaders and partners who have assisted us with the project," said Dave Sumoski, Executive Vice President of Merchant and Rebar Products. "Identifying the right location is an essential part of our rebar micro mill strategy, and this part of central Florida met all the criteria we evaluate. We look forward to becoming a member of the community."
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) U.S. and foreign trade policies affecting steel imports or exports; (3) 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; (4) market demand for steel products; and (5) 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 2017 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.