Charlotte, North Carolina-based Nucor Corp. says it will build a 3 million-ton-per-year electric arc furnace (EAF) steel mill in one of three states: Ohio, Pennsylvania or West Virginia. The announcement comes just three days after Pittsburgh-based United States Steel Corp. announced its intention to install EAF capacity on a similar scale in the Southeast.
Nucor says its board of directors has approved the construction of what it calls a state-of-the-art sheet mill with 3 million tons per year of capacity. “Nucor is evaluating locations in Ohio, Pennsylvania and West Virginia,” states the EAF steelmaker.
“The new mill will be geographically situated to serve customers in the Midwest and Northeast markets and will have a significantly lower carbon footprint than nearby competitors,” adds Nucor.
“This greenfield sheet mill complements Nucor’s existing operations, allowing us to more effectively service customers in the region and grow our core business while creating substantial value for our shareholders,” says Leon Topalian, Nucor president and CEO. “This mill will allow us to competitively meet the growing need that many of our customers, particularly in the automotive market, have for high-quality steel with a lower carbon footprint,” he adds.
The new sheet mill is expected to cost approximately $2.7 billion and will be able to produce hot-rolled sheet products with downstream processing including a tandem cold mill, annealing capabilities and two galvanizing lines. Nucor predominantly uses scrap metal to feed its furnaces, though the firm also produces direct reduced iron (DRI) at a plant in Louisiana.
Once a site is selected and after permitting and other regulatory approvals are received, construction is expected to take two years, Nucor says.
“The green and digital economy is being built with steel, and Nucor, as one of the cleanest steelmakers in the world, is poised to be able to meet these unique opportunities,” Topalian says.