Nucor’s board of directors has approved a $290 million investment to modernize its sheet mill in Crawfordsville, Indiana, through the installation of a construction-grade continuous galvanizing line and pre-paint line, the US-based steelmaker said Feb. 1.
The continuous galvanizing line will have a capacity of 300,000 st/year while the pre-paint line will have an annual capacity of 250,000 st/year, Nucor said. The Crawfordsville mill has an annual rated production capacity of 1.9 million st/year, according to data from the Association for Iron and Steel Technology.
The modernization project is expected to take two years to complete pending permitting, regulatory approvals, the award of state and local incentives and other tax considerations, the company said.
The investment in the Crawfordsville facility, Nucor’s first electric arc furnace sheet mill, is part of the company’s strategy to grow its core steel business and expand its portfolio of value-add product, Rex Query, Nucor’s executive vice president for sheet and tubular products, said in a statement. The mill has been in operation since 1989.
Nucor recently added continuous galvanizing lines at its sheet mills in Arkansas and Kentucky and acquired Precoat Metals’ paint line facility in Armorel, Arkansas, in October 2020.
Spot prices for US domestic hot-dip galvanized sheet have weakened since the third quarter of 2021 alongside falling hot-rolled coil prices, but continue to sit above historic norms, according to S&P Global Platts pricing data.
The daily Platts TSI US cold-rolled HDG index was at $1,700/st Jan. 31, while the Platts TSI US hot-rolled substrate assessment was at $1,690/st. Both prices are on an ex-works Midwest basis.
— Justine Coyne
