Nucor provides 1-year update on West Virginia sheet mill

Charlotte, North Carolina-based steelmaker Nucor Corp. has provided a one-year update on the status of its new scrap-fed electric arc furnace (EAF) steel sheet mill in West Virginia, including the approval by the company’s board of directors to provide additional capital to fund construction of the project.

The new mill, in Mason County near the Ohio River, is expected to have an annual capacity of 3 million tons and employ around 800 full-time workers once fully operational. The company says it will employ as many as 2,000 construction workers during the building phase.

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“We remain incredibly excited about our Nucor Steel West Virginia mill and its advanced capabilities that will expand our ability to provide our customers with the cleanest and highest-quality steel products, particularly for demanding automotive and construction applications,” says Leon Topalian, chair, president and chief executive officer at Nucor. “The Midwest and Northeast consume half the sheet steel in the United States. This transformative project will provide customers in these high-demand regions with more sustainable sheet steel, create long-term value for our shareholders and fuel additional growth for Nucor.”

Nucor says it now expects a net cash outlay of approximately $3.1 billion for the West Virginia mill, up from $2.7 billion when the project was first announced in September 2021. The revised $3.1 billion estimate is net of $275 million in cash proceeds received from the state of West Virginia for costs related to the Apple Grove site location. The company says factors contributing to the increased capital cost include general inflation, the acquisition of additional property and equipment and expanded port and rail infrastructure requirements.

The company says, to date, the West Virginia mill has received all required state permits and is working to secure federal permits this spring. Construction of the new mill is expected to take 2 to 3 years once all the necessary permit approvals have been received, and the company is actively hiring to grow its team in the state.

When operational, Nucor says the new mill will be equipped to produce 84-inch sheet products and, among other features, will include a 76-inch tandem cold mill and two galvanizing lines capable of producing advanced high-end automotive and construction grades.

“It’s been an exciting first year for our team in West Virginia,“ Nucor Steel West Virginia Vice President and General Manager John Farris says. “We cannot thank the state’s federal, state and local officials enough for their support and help with this project. We appreciate the warm welcome we have received and working with these officials to recruit the talent we will need to build an amazing Nucor Steel West Virginia team.”