Nucor to build “micro mill” in Missouri

Nucor to build “micro mill” in Missouri

Scrap-fed EAF mill will supply steel rebar to Midwest markets; Nucor considering a second such mill in the Southeast.

November 22, 2017

Charlotte, North Carolina-based Nucor Corp. has announced it will build a rebar “micro mill” in Sedalia, Missouri, about 90 miles east of Kansas City. The new micro mill will cost approximately $250 million to build and is expected to start operating in 2019, pending the finalization of state and local incentives and receiving the required permits and regulatory approvals.

“This rebar micro mill project is consistent with our long-term strategy for profitable growth and builds on our position as a low-cost producer,” says John Ferriola, chairman, CEO and president of Nucor. “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 supply to the Kansas City, Upper Midwest and Plains states markets currently travels long distances, giving the micro mill in Sedalia a logistical advantage, according to Nucor. The company also indicates the location will allow it “to take advantage of the abundant scrap supply in the immediate area provided by Nucor's scrap business, The David J. Joseph Co.”

A Nucor executive also has disclosed the steelmaker is seeking a site for a second rebar micro mill. “We are encouraged by the tremendous support received by the state and local community in Missouri, and Nucor has decided to pursue an additional micro mill project,” says Dave Sumoski, executive vice president of merchant and rebar products at Nucor. “Two regions are currently under consideration in the southeastern United States for this additional project.”

Following its approval by the Missouri Development Finance Board, the project was formally announced by Nucor in late November 2017 at an event attended by Missouri Gov. Eric Greitens. The rebar micro mill investment is expected to create 255 full-time jobs as well as 450 temporary construction jobs.

“We would like to thank state and local officials who have assisted us with the project, including Gov. Greitens, the Missouri Department of Economic Development, the city of Sedalia, Pettis County and Kansas City Power & Light,” says Sumoski. “Our 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.”