Nucor Corporation’s board has approved an expansion project that will add a coil paint line at its sheet mill in Mississippi County, Arkansas. The new coil paint line is projected to start operations in the first half of 2022, with a capacity of 250,000nt (226,796mt) per year. The capital investment is expected to allow the steel plant to build a high-quality continuous coil coating line that meets select specifications.
Nucor intends to increase its product offering by expanding its product and market participation with the additional processing capability. The company plans to compete in new markets that include roofing and siding, light fixtures and appliances. The new line is anticipated to improve the service provided to pre-paint customers and strengthen Nucor’s existing market position in HVAC, garage doors and service centers.
The Nucor mill in Arkansas produces about 2.6mn nt (2.36mn mt) of hot-rolled sheet steel for automotive, construction, appliance, pipe and tube and several other functions. Recently, it completed the construction of a specialty cold mill complex and is currently building a galvanizing line, expected to begin operation in 2021.
The shares of Nucor have increased 6.4pc in the past year compared to the industry’s decrease of 2.4pc.