Nucor Corp will build a $2.7-billion steel sheet mill in Mason County, West Virginia, the company announced on Wednesday January 12. The mill will employ 800 when it is fully operational, and it will be able to produce 3 million tons of steel annually.
By Robert England
Fastmarkets AMM
January 14, 2022
"Following a thorough process to determine the right location for our state-of-the-art, greenfield sheet mill, we are thrilled to make this significant investment in West Virginia and enhance our presence in this important region," Nucor president and chief executive officer Leon Topalian said.
The mill "will have unmatched capabilities that will enable the continued expansion of high-quality, low-carbon steels, building on our industry-leading offerings," he added.
Nucor had been considering sites in West Virginia, Pennsylvania and Ohio for the mill.
Steel industry sources told Fastmarkets on Tuesday January 11 that they expected Nucor to choose West Virginia - specifically Mason County - for the mill.
Additionally on Tuesday, West Virginia Governor Jim Justice indicated he expected to make a "major, major announcement" on Wednesday regarding a heavy industrial investment.
The governor had convened a special session of the state Legislature on January 10, and the state Senate quickly approved a package of economic incentives and infrastructure support for an unnamed major industrial investment. The House of Delegates approved the same legislation Tuesday, and it was signed into law.
The site for the mill is adjacent to the Ohio River and provides Nucor with transportation and logistics advantages that will strengthen its ability to serve customers in the Midwest and the Northeast - the two largest sheet consuming regions in the United States - the company stated in its release.
The mill will have a significantly lower carbon footprint than competitors who have historically supplied the region, Nucor said.
"We are also excited to create substantial long-term value for investors through this high-return investment, which will help drive Nucor's continued growth," Topalian said.
The mill will be equipped to produce 84in sheet products, and, among other features, will include a 76in tandem cold mill and two galvanizing lines, according to Nucor.
Galvanizing capabilities will include an advanced high-end automotive line with full inspection capabilities as well as a construction-grade line.
Construction of the new facility is expected to take two years, pending permit and regulatory approvals.
Additional sites in northern West Virginia are under consideration for a transload and processing facility, Nucor said.
"We thank Governor Jim Justice, Secretary Mitch Carmichael and the West Virginia Department of Economic Development, Speaker of the House of Delegates Roger Hanshaw, Senate President Craig Blair and local officials in Mason County for their partnership and support of this project," said John Farris, vice president and general manager of Nucor Steel West Virginia.
"We look forward to breaking ground in Mason County and partnering with colleges and universities on workforce development programs, supporting veterans' organizations and local food pantries, and working with opioid recovery programs that will provide meaningful pathways to jobs," Farris added.
