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Nucor

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Nucor Corporation
Company typePublic
IndustrySteel
PredecessorREO Motor Car Company
Founded1955; 69 years ago (1955)
HeadquartersCharlotte, North Carolina, United States
Key people
ProductsSteel
Rebar
RevenueDecrease US$34.71 billion (2023)
Decrease US$4.525 billion (2023)
Total assetsIncrease US$35.34 billion (2023)
Total equityIncrease US$22.12 billion (2023)
Number of employees
c. 32,000 (2023)
Websitenucor.com
Footnotes / references
[1]
Molten steel transferred from furnace to ladle

Nucor Corporation is an American company based in Charlotte, North Carolina, that produces steel and related products. It is the largest steel producer in the United States and the largest recycler of scrap in North America.[1] Nucor is the 16th-largest steel producer in the world.[2] Along with Commercial Metals Company, it is one of two primary suppliers of rebar used to reinforce concrete in buildings, bridges, roads, and infrastructure in the U.S.

Current operations

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To supply its mills, Nucor uses electric arc furnaces and continuous casting to melt scrap steel as opposed to blast furnaces to melt iron. In 2023, the company produced and sold approximately 18.5 million tons of steel and recycled 18.4 million tons of scrap.[1]

None of Nucor's mills are unionized and the corporate culture is opposed to trade unions.[3][better source needed]

History

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After REO Motor Car Company, founded by Ransom E. Olds, sold its operations and initiated liquidation proceedings, a group of dissident activist shareholders, noticing the existence of a usable tax loss, successfully challenged the liquidation in a proxy fight in September 1955 and forced REO to take over a tiny nuclear services company called Nuclear Consultants, Inc. in a reverse takeover.

The company was renamed "Nuclear Corporation of America Inc." and relocated to offices in the Empire State Building in New York City. The organization's attempt to recast itself as a nuclear industry services company was unsuccessful, and it followed the example of other companies in the 1950s and 60s by attempting to become a conglomerate, moving its headquarters to Phoenix, Arizona. It made several acquisitions, including the Vulcraft Corporation, a steel joist manufacturer located in Florence, South Carolina. Vulcraft was founded by Sanborn Chase, who died at an early age, leaving the company to his widow. Nuclear purchased Vulcraft from Chase's widow in 1962 and hired F. Kenneth Iverson as general manager. In March 1965, the company again filed for bankruptcy. Iverson, head of the only profitable division, took over as head of the company due to lack of interest in the job from others.[4]

Iverson reorganized Nucor around its only profitable business, the steel fabricator Vulcraft. All other businesses were either sold or liquidated.[4]

In 1966, the company moved its headquarters to Charlotte, North Carolina to be closer to its main Vulcraft plant in South Carolina.[5]

In 1968, unable to get favorable steel prices from American manufacturers and unhappy with the imported steel available at the time, Iverson, a metallurgist by training, extended Nucor vertically into steelmaking by building its first steel bar mill in Darlington, South Carolina.[6][7]

The company purchased an electric arc furnace, which was far cheaper than the traditional steel blast furnace, with a $6 million loan secured by all of the company's assets. Production delays and staffing problems resulted in losses, but earnings soared in 1971 and 1972.

In 1972, the company, recognizing that it was now misnamed, adopted its current title, Nucor Corporation.[4] That year, it became a public company via an initial public offering.[8]

In 1988, the company opened its building products division.

In 1989, Nucor opened a facility in Crawfordsville, Indiana, the first mini mill in the world to produce flat rolled steel using thin-slab technology.[9][10]

In March 2000, a joint venture, owned 47.5% by Nucor, 47.5% by BlueScope, and 5% by IHI Corporation was formed to license Castrip technology.[11] This technology allowed for continuous casting of sheet steel directly from molten steel without the need for heavy, expensive, and energy-consuming rollers.

Acquisitions and divestitures

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Date Acquisition / Divestiture Company Price Ref(s).
September 2001 Acquisition Auburn Steel $115 million [12]
May 2002 Acquisition Birmingham Steel $615 million [13][14]
June 2004 Acquisition Corus Tuscaloosa $90 million [15]
January 2005 Acquisition Fort Howard Steel Undisclosed [16]
April 2005 Acquisition Marion Steel $113 million [17]
June 2005 Acquisition Connecticut Steel $43 million [18]
September 2006 Acquisition Verco Decking $113 million [19]
April 2005 Acquisition Harris Steel $1.07 billion [20]
March 2008 Acquisition David J. Joseph Company $1.44 billion [21]
June 2012 Acquisition Skyline Steel $605 million [22]
October 2014 Acquisition Gallatin Steel $770 million [23]
November 2015 Acquisition Gerdau Bright Bar assets Undisclosed [24]
July 2016 Acquisition Steel plate mill from Joy Global $29 million [25]
September 2016 Acquisition Independence Tube $435 million [26]
December 2016 Acquisition Southland Tube $130 million [27]
August 2017 Acquisition St. Louis Cold Drawn Undisclosed [28]
December 2019 Acquisition TrueCore Insulated Panels Undisclosed [29][30]
July 2021 Acquisition Insulated Metal Panels Business from Cornerstone Building Brands $1 billion [31]
August 2021 Acquisition Hannibal Industries $370 million [32]
October 2021 Acquisition Grossman Iron and Steel & Garden Street Iron & Metal Undisclosed [33]
December 2021 Acquisition Majority ownership of California Steel Industries $130 million [34]
April 2022 Acquisition Elite Storage Solutions $75 million [35][36]
June 2022 Acquisition Summit Utility Structures Undisclosed [37]
June 2022 Acquisition CHI Overhead Doors $3.0 billion [38][39]
August 2022 Divestiture David J. Joseph Company’s U-Pull-&-Pay Division Undisclosed [40]
April 2024 Acquisition Southwest Data Products $115 million [41]

Closures and new investments

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Date Type Description Ref(s).
April 2017 Investment $85 million upgrade of the rolling mill at its Marion, Ohio rebar and signpost operation [42]
March 2020 Production start Joint venture with JFE Steel in Mexico [43]
May 2023 Closure Longview plate mill [44]
August 2023 Construction start Steel mill in Lexington, North Carolina [45]

List of CEOs

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  • H. David Aycock (1999–2000)
  • Leon J. Topalian (2019–present)[50]

Environmental issues

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In 2000, Nucor agreed to spend $98 million, including $85 million for new air pollution control equipment, $4 million to monitor and reduce pollution in communities near its plants, and a $9 million civil fine to resolve allegations by the United States Department of Justice and the United States Environmental Protection Agency that it had not adequately controlled the emission of toxic chemicals into the air, water, and soil in Alabama, Arkansas, Indiana, Nebraska, South Carolina, Texas, and Utah. The settlement was "the largest and most comprehensive environmental settlement ever with a steel manufacturer."[51][52]

In 2016, the company unsuccessfully filed a lawsuit to block the Environmental Protection Agency from adopting a plan to control visible pollution in Arkansas.[53]

In 2023, the company signed an agreement with ExxonMobil for carbon capture and storage of up to 800,000 metric tons from its direct reduced iron plant in Convent, Louisiana.[54] The plant had been criticized for its emissions.[55]

Further reading

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  • Preston, Richard (1992). American Steel. Quill. ISBN 0-380-71822-7. Story of Nucor's first big mill, discusses the history of Nucor.

See also

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References

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  1. ^ a b c "Nucor Corporation 2023 Form 10-K Annual Report". U.S. Securities and Exchange Commission. February 28, 2024.
  2. ^ "Top steel-producing companies". World Steel Association.
  3. ^ "History of Nucor". Steelonthenet.com.
  4. ^ a b c "F. Kenneth Iverson, 76; Built Nucor Into No. 2 Steelmaker". Los Angeles Times. April 20, 2002.
  5. ^ Downey, John (September 26, 2019). "Nucor has a culture that's survived every CEO shift". American City Business Journals.
  6. ^ Metzger, Mark K. (April 1, 1984). "F. Kenneth Iverson of Nucor: Man of Steel". Inc.
  7. ^ Peninger, Kay. "Ken Iverson and Nucor Corporation". Charlotte Museum of History.
  8. ^ Downey, John (September 26, 2019). "Nucor marks 50 years on the stock market — and 43,796% revenue growth". American City Business Journals.
  9. ^ HICKS, JONATHAN P. (December 2, 1989). "Thomas Cousins set to retire". The New York Times.
  10. ^ Franklin, Stephen (April 28, 1991). "High-tech Steel Mill Doing More With Less". Chicago Tribune.
  11. ^ Trade Commission, U.S. International (October 2015). "Certain Hot-Rolled Steel Flat Products from Australia, Brazil, Japan, Korea, the Netherlands, Turkey, and the United Kingdom" (PDF). U.S. International Trade Commission. 4570: 21.
  12. ^ "NUCOR BUYS STEEL-BAR MILL ASSETS FOR $115 MILLION". The New York Times. Bloomberg News. March 20, 2001.
  13. ^ "Birmingham Steel selling to Nucor for $615M". American City Business Journals. May 30, 2002.
  14. ^ "NUCOR IN $615 MILLION DEAL FOR BIRMINGHAM STEEL". The New York Times. Associated Press. May 22, 2002.
  15. ^ "Nucor buys Corus Tuscaloosa". United Press International. June 8, 2004.
  16. ^ "Nucor to buy Wisconsin plant". American City Business Journals. January 10, 2005.
  17. ^ "NUCOR TO BUY MARION STEEL FOR $113 MILLION". The New York Times. April 19, 2005.
  18. ^ "Nucor unit buys Connecticut mill". American City Business Journals. May 1, 2006.
  19. ^ "Nucor to buy Phoenix company for $180M". American City Business Journals. September 12, 2006.
  20. ^ "Nucor to buy Harris Steel in $1 billion deal". Reuters. January 21, 2007.
  21. ^ "Nucor Acquires The David J. Joseph Company". Thomas Register (Press release). March 3, 2008.
  22. ^ "Nucor Acquires Skyline Steel LLC" (Press release). PR Newswire. June 21, 2012.
  23. ^ "Nucor Completes Acquisition Of Gallatin Steel Company" (Press release). PR Newswire. October 8, 2014.
  24. ^ "Nucor to Acquire Cold Finish Bar Assets in Ohio and Georgia" (Press release). PR Newswire. November 9, 2015.
  25. ^ "Nucor to Acquire Plate Mill in Texas" (Press release). PR Newswire. July 20, 2016.
  26. ^ "Nucor to Acquire Independence Tube Corporation" (Press release). PR Newswire. September 19, 2016.
  27. ^ "Nucor to Acquire Southland Tube" (Press release). PR Newswire. December 6, 2016.
  28. ^ "Nucor to Acquire Cold Finish Facilities in Missouri and Mexico" (Press release). PR Newswire. August 10, 2017.
  29. ^ "Nucor Acquires TrueCore Insulated Panels" (Press release). PR Newswire. December 11, 2019.
  30. ^ Downey, John (June 7, 2021). "Nucor to acquire insulated metal panel business from Cary-based company for $1B". American City Business Journals.
  31. ^ "Nucor to Acquire Insulated Metal Panels Business from Cornerstone Building Brands" (Press release). PR Newswire. June 7, 2021.
  32. ^ "Nucor Completes Acquisition of Hannibal Industries, Inc" (Press release). PR Newswire. August 23, 2021.
  33. ^ "Nucor Affiliates Announce Two Acquisitions" (Press release). PR Newswire. October 1, 2021.
  34. ^ "Nucor Acquires Majority Ownership of California Steel Industries" (Press release). PR Newswire. December 13, 2021.
  35. ^ "Nucor Acquires Steel Racking Manufacturer Elite Storage Solutions" (Press release). PR Newswire. April 5, 2022.
  36. ^ Downey, John (April 5, 2022). "Nucor expands steel racking business with $75M acquisition". American City Business Journals.
  37. ^ "Nucor to Acquire Manufacturer of Steel Utility Structures" (Press release). PR Newswire. June 7, 2022.
  38. ^ "Nucor Completes Acquisition of C.H.I. Overhead Doors" (Press release). PR Newswire. June 24, 2022.
  39. ^ Downey, John (May 16, 2022). "Nucor's $3B deal for C.H.I. Overhead Doors marks its priciest acquisition ever". American City Business Journals.
  40. ^ "PULL-A-PART ACQUIRES THE DAVID J. JOSEPH COMPANY'S U-PULL-&-PAY DIVISION" (Press release). PR Newswire. August 29, 2022.
  41. ^ FinSMEs (2024-04-01). "Nucor to Acquire Southwest Data Products, for $115M". FinSMEs. Retrieved 2024-04-02.
  42. ^ "Nucor to invest $85 million in Marion upgrade". USA Today. April 3, 2017.
  43. ^ "Nucor-JFE Steel Mexico Hot-dip Galvanized Sheet Steel Facility Begins Production" (Press release). PR Newswire. March 5, 2020.
  44. ^ "Nucor Announces Plate Mill Group Reorganization" (Press release). PR Newswire. May 24, 2023.
  45. ^ Doss-Raines, Jill (August 25, 2023). "Nucor breaks ground on its $350 million Lexington rebar plant". The Dispatch.
  46. ^ Adams, Chris (June 4, 1999). "Nucor CEO Steps Down Suddenly, Sending Steel Firm's Stock Sliding". The Wall Street Journal.
  47. ^ "John Correnti, Ex-Nucor CEO who led Big River Steel, dies". Charlotte Observer. August 19, 2015.
  48. ^ "Daniel R. DiMicco To Retire As Executive Chairman Of Nucor; John J. Ferriola Named Chairman Effective January 1, 2014" (Press release). PR Newswire. November 5, 2013.
  49. ^ "John J. Ferriola To Be Named Nucor CEO Effective January 1, 2013, Daniel R. DiMicco Continues As Executive Chairman" (Press release). November 16, 2012.
  50. ^ Tita, Bob (September 6, 2019). "Nucor to Replace CEO at Year-End". The Wall Street Journal.
  51. ^ "U.S. REACHES ENVIRONMENTAL SETTLEMENT WITH STEEL MANUFACTURER NUCOR" (Press release). United States Department of Justice. December 19, 2000.
  52. ^ "Nucor agrees to pay $98 million for pollution control, penalties". Deseret News. Associated Press. December 21, 2000.
  53. ^ Bailey, David (April 16, 2016). "Federal judge dismisses pollution suit by Nucor Steel Arkansas". Reuters.
  54. ^ "ExxonMobil signs carbon capture agreement with Nucor Corporation, reaching 5 MTA milestone" (Press release). ExxonMobil. June 1, 2023.
  55. ^ MITCHELL, DAVID J. (November 13, 2022). "Nucor hit with EPA air pollution violations at St. James plant as DEQ mulls big permit increases". The Advocate.
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  • Business data for Nucor:
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