Nucor Corporation (NYSE: NUE) announced today that the Company's board of directors has approved the construction of a rebar micro mill, with spooling capabilities, to be located in the South Atlantic region. This will be Nucor's third rebar micro mill, joining its existing micro mills in Missouri and Florida, both of which began operations in 2020. The budgeted capex for the new micro mill is $350 million. It will have an annual capacity of 430,000 tons.
"We have recently executed two successful rebar micro mill start-ups and believe the East Coast market will be in need of additional rebar supply in the coming years, particularly with the recent passage of the infrastructure spending bill," said Leon Topalian, President & Chief Executive Officer of Nucor. "Rebar has been a core business for Nucor since we got into steelmaking and this project will enable us to maintain our leadership position in the rebar market."
Rebar is used primarily in the construction of roads, buildings, sidewalks and other structures. Due to the variety of its end uses, rebar has had resilient demand characteristics over the last 20 years. The rebar market is expected to show continued strength. Most of the rebar used in the U.S. is produced domestically, and rebar imports have decreased in recent years due to strong trade enforcement.
Nucor has 15 bar mills strategically located across the United States that manufacture a broad range of steel products, including concrete reinforcing bars, hot-rolled bars, rounds, light shapes, structural angles, channels, wire rod and highway products in carbon and alloy steels. Four of the bar mills have a significant focus on manufacturing SBQ and wire rod products. Steel produced by Nucor bar mills serves numerous end markets, including the agricultural, automotive, construction, energy, furniture, machinery, metal building, railroad, recreational equipment, shipbuilding, heavy truck and trailer market segments. Nucor's bar steel production capacity is estimated at approximately 9.5 million tons per year.