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Nucor to Restart Kingman Bar Mill
Aug. 27, 2008 Nucor Corp. announced plans to restart steel bar production at its previously idled rolling mill in Kingman, Ariz. Nucor expects to spend around $30 million on the capital improvements necessary to restart production.
With Kingman’s rolling operations expected to begin by the second quarter of 2009, Nucor is projecting the initial annual output of straight-length rebar, coiled rebar and wire rod to be about 250,000 tons. The Kingman mill will have the capability to increase annual production to more than 500,000 tons.
Nucor acquired North Star Steel's idled Kingman steel mill in 2003 for a purchase price of approximately $35 million, but decided in 2004 that the facility’s meltshop would not be restarted. The company recorded a $13-million impairment charge for the meltshop assets, but held the rolling mill assets available for restart whenever market conditions warranted.
Nucor said its decision to start rolling rebar and wire rod products was driven by growing demand in the southwestern U.S. market—both from its outside customers and its expanding downstream rebar fabrication business. With the rolling mill startup, Nucor will leverage Kingman's very attractive capital cost for rolling steel with excess low-cost melting capacity at the company’s existing bar mills.
"Startup of our low-cost rolling mill in Arizona is an exciting growth project in the very attractive southwestern U.S. market for rebar and wire rod,” commented Dan DiMicco, Nucor's Chairman, CEO and President. “Nucor Steel Kingman, LLC will build upon Nucor's position as North America's largest rebar producer. The restart of this facility expands our highly successful vertical integration business model."
Headquartered in Charlotte, N.C., Nucor makes more steel in America than any other company. Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Co., one of the leading scrap companies in the U.S., 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.