Nucor Increases Investment in Texas Mill

Investment at plant will increase steel production.

Nucor Steel announced plans to invest another $100 million in its Jewett, Tex., plant. The investment is expected to increase the facility’s capacity to 1 million tons of steel a year.

Modifications at the plant will increase Nucor’s manufacturing capacity by around 33 percent.

"We're very excited about it," said Rick Wilborn, spokesman for Waco-based Lipsitz Iron & Metal. Lipsitz trucks shredded scrap steel to Nucor, which converts it into new steel for use in automobiles, farm machinery, metal buildings, furniture and recreational equipment.

"A significant portion of the raw materials used in that plant comes from this region," said Wilborn. "That means there is going to be increased market for our products. They will want to fill that plant up."

Lipsitz shreds old cars, refrigerators and other scrap, converting it into a material called shredded steel that the Nucor plant "can use directly" in its manufacturing process, said Wilborn.

Nucor Corp., headquartered in Charlotte, N.C., operates four Texas plants located in Denton, Terrell, Grapeland and Jewett.

"Plants like this face competition from countries like Japan, and they must stay competitive on price. I'm glad to see that Nucor is modernizing and keeping the jobs in Jewett," said Ray Perryman, a Waco-based economic consultant.

The plant represents more than 20 percent of the business activity in Leon County. The announcement on Wednesday is Phase 2 of a $200 million modernization that began in 1999 and ends in 2004.

According to Perryman, who figured direct and indirect benefits, the economic impact of this project on Leon County look like this: -- $272 million in annual total expenditures; -- $100 million in annual personal income; -- $23 million in annual retail sales; -- 2,496 person-years of employment.

Gov. Perry said the project will have a $460-million impact on the state as a whole.

"In short," he said, "this project means good jobs and a more vibrant Texas."

Though optimistic, Wilborn had a word of caution.

"I see this as a benefit to our region, but the verdict is still out if they go through a period like last year when they were running at 50-percent capacity," he said. "But I got a feeling they wouldn't be doing this expansion if they were planning on running on empty." Waco Tribune-Herald