Sources: Nucor Corp., Charlotte, N.C.; CP staff
Following a Missouri Development Finance Board nod, Nucor has confirmed plans for a micro rebar steel mill in Sedalia, Mo. Located about 90 miles east of Kansas City and close to the Interstate 70 corridor, the facility is scheduled for 2019 start up pending award of state and local incentives and permits, plus regulatory approvals.
“This project is consistent with our long-term strategy for profitable growth and builds on our position as a low-cost producer,” says Nucor Chairman John Ferriola. “Strategically positioning this micro mill in the Kansas City area will give us a sustained cost advantage over other domestic steel producers supplying rebar from outside the region.”
Rebar for the Kansas City, upper Midwest and Great Plains markets currently travels long distances, he notes, giving the Sedalia operation a logistical edge coupled with the availability of raw material from Nucor’s nearby scrap steel business, David J. Joseph Co. The micro mill project represents at least $250 million in new investments and is expected to create 450 temporary construction and 250-plus full-time jobs.
“Bar mills have been the foundation of our company, and we believe strategically supplying underserved markets will allow our bar business to continue to generate significant value in the future,” observes Nucor Executive Vice President of Merchant and Rebar Products Dave Sumoski. On the heels of the Missouri project, he adds, the company is eyeing development of an additional micro mill in the Southeast.