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Nucor to Build $1.35 Billion Steel Plate Mill in Kentucky
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Nucor Corporation (NUE - Free Report) is set to construct the state-of-the-art steel plate mill in Brandenburg, KY. It will invest roughly $1.35 billion for the construction. The new mill will have the capacity to produce 1.2 million tons of steel plate products annually.
Moreover, the company plans to hire more than 400 full-time teammates at an average annual salary of $72,000. The company expects the new mill to be fully operational in 2022, pending permit and regulatory approvals.
Per Nucor, the strategic investment will enable it to build clear market leadership position in the U.S. plate market. The company stated that Kentucky is an excellent location for the mill. The mill will be located along the Ohio River southwest of Louisville. It will be in the center of America's largest plate consuming region.
Moreover, the buyout of the Gallatin sheet mill in Ghent was a successful move. Addition of a second mill in the state will significantly strengthen the company’s plate product portfolio. Notably, the new mill will enable the company to produce 97% of the products demanded in the domestic plate market, which include specialty higher-margin products.
Nucor stated that the mill will produce coiled, cut-to-length, heat-treated and discrete plate of 60-160 inches wide and in gauges from 3/16 of an inch to 14 inches. Further, location on the Ohio River will give the company logistical advantages in sourcing raw materials along with catering to customer needs throughout the Midwest. Currently, the company operates plate mills in Alabama, North Carolina and Texas.
Nucor has two additional significant investment projects in progress at its Gallatin sheet mill in Kentucky. Its new galvanizing line is likely to be operational during the second quarter of 2019. Also, the company’s project to increase Gallatin's hot rolled coil capacity is expected to come online during 2021. The new plate mill along with the projects at Nucor Steel Gallatin represent investments worth more than $2 billion in the state.
Nucor’s shares have lost 5.7% in the past year compared with the industry’s 23.3% decline.
Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 99.1% in the past year.
Ingevity has an expected earnings growth rate of 17.9% for the current year. The company’s shares have rallied 46% in a year’s time.
Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 11.5% in a year’s time.
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Nucor to Build $1.35 Billion Steel Plate Mill in Kentucky
Nucor Corporation (NUE - Free Report) is set to construct the state-of-the-art steel plate mill in Brandenburg, KY. It will invest roughly $1.35 billion for the construction. The new mill will have the capacity to produce 1.2 million tons of steel plate products annually.
Moreover, the company plans to hire more than 400 full-time teammates at an average annual salary of $72,000. The company expects the new mill to be fully operational in 2022, pending permit and regulatory approvals.
Per Nucor, the strategic investment will enable it to build clear market leadership position in the U.S. plate market. The company stated that Kentucky is an excellent location for the mill. The mill will be located along the Ohio River southwest of Louisville. It will be in the center of America's largest plate consuming region.
Moreover, the buyout of the Gallatin sheet mill in Ghent was a successful move. Addition of a second mill in the state will significantly strengthen the company’s plate product portfolio. Notably, the new mill will enable the company to produce 97% of the products demanded in the domestic plate market, which include specialty higher-margin products.
Nucor stated that the mill will produce coiled, cut-to-length, heat-treated and discrete plate of 60-160 inches wide and in gauges from 3/16 of an inch to 14 inches. Further, location on the Ohio River will give the company logistical advantages in sourcing raw materials along with catering to customer needs throughout the Midwest. Currently, the company operates plate mills in Alabama, North Carolina and Texas.
Nucor has two additional significant investment projects in progress at its Gallatin sheet mill in Kentucky. Its new galvanizing line is likely to be operational during the second quarter of 2019. Also, the company’s project to increase Gallatin's hot rolled coil capacity is expected to come online during 2021. The new plate mill along with the projects at Nucor Steel Gallatin represent investments worth more than $2 billion in the state.
Nucor’s shares have lost 5.7% in the past year compared with the industry’s 23.3% decline.
Zacks Rank & Key Picks
Nucor currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Kirkland Lake Gold Ltd. , Ingevity Corporation (NGVT - Free Report) and Materion Corporation (MTRN - Free Report) , all currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kirkland has an expected earnings growth rate of 8.8% for 2019. The company’s shares have surged 99.1% in the past year.
Ingevity has an expected earnings growth rate of 17.9% for the current year. The company’s shares have rallied 46% in a year’s time.
Materion has an expected earnings growth rate of 12.6% for 2019. Its shares have gained 11.5% in a year’s time.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>