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Nucor's (NUE) Fastener Unit Acquires Coil Processing Facility

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Nucor Corporation (NUE - Free Report) recently announced that with the acquisition of an existing state-of-the-art coil processing site in Shelbyville, IN it is expanding the Nucor Fastener division. This facility consists of an automated clean and coat line, 2 STC furnaces and wire drawing capabilities.

Along with coil processing, Nucor will expand its fastener manufacturing capabilities by installing bolt making equipment at the Shelbyville facility. This new operation will employ roughly 33 team members at the start with the possibility to double those jobs as it reaches full capacity.

Nucor recycles steel in electric arc furnaces, with greenhouse gas emissions that are one-third of the global steelmaking average and nearly one-fifth of the average blast furnace steel producer.  This makes the company one of the cleanest steel manufacturers in the world. Its Fastener Products are made with 97% recycled content, which is more sustainable than fasteners produced from blast furnace steel made overseas.

Nucor is among the prominent players in the steel space along with ArcelorMittal (MT - Free Report) , United States Steel Corporation (X - Free Report) and Steel Dynamics, Inc. (STLD - Free Report) . The new facility will enable Nucor to better service the automotive cold heading quality market and offer highest quality products to customers. The Shelbyville facility will permit the Nucor Engineered Bar group to provide processed coil with superior surface quality for the most demanding automotive CHQ applications.

Nucor noted that adding bolt making capability to the Shelbyville facility will expand its offerings to the automotive, heavy truck, industrial/MRO and structural fastener markets. Nucor Fastener is already a leader in steel fasteners and this expansion will further strengthen  that position, the company stated.

Last month, Nucor announced guidance for third-quarter 2021. It expects the quarter’s earnings between $7.30 and $7.40 per share. The company is gearing up to report the highest quarterly earnings ever in its history, surpassing the prior record of earnings per share (EPS) of $5.04 in second-quarter 2021.

This upbeat outlook is backed by strong demand across most of Nucor’s end-markets and higher average selling prices, which is driving strong profitability in all of the three segments. The company expects the steel products segment to generate higher earnings in the third quarter, owing to margin expansion stemming from higher average selling prices.

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