Sep. 07, 2018 - Nucor Corporation's (NYSE: NUE) Board of Directors approved an investment of $650 million to expand the production capability of Nucor Steel Gallatin, the company's flat-rolled sheet steel mill located in Ghent, Kentucky. This investment will increase the production capability from 1,600,000 tons to approximately 3,000,000 tons annually and will increase the maximum coil width to approximately 73 inches. The project is expected to create 70 full-time jobs.
This expansion complements the $176 million investment currently underway to construct a hot band continuous pickle galvanizing line at Nucor Steel Gallatin. The pickle galvanizing line is expected to be operational in the first half of 2019 and will produce approximately 500,000 tons per year of galvanized hot band steel. Nucor continues to evaluate additional expansion projects as part of the company's initiative to further grow its sheet business.
"This investment is another major component of our planned strategy for long-term profitable growth," said John Ferriola, Chairman, CEO & President of Nucor. "Together with the new galvanizing line, this expansion increases our presence in the important Midwest market, specifically in the automotive, agriculture, heavy equipment, and energy pipe and tube sectors." Nucor acquired the former Gallatin Steel Company in late 2014 for a purchase price of approximately $780 million.
"We would like to thank Governor Matt Bevin, our local officials, East Kentucky Power Cooperative and Owen Electric, our teammates and the entire community for their support," said John Farris, Vice President and General Manager, Nucor Steel Gallatin. "The project will allow us to better serve our automotive and value-added customers."