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Nucor Steel Gallatin Upgrades Mill In Ghent, Kentucky

Friday, May 26, 2017

Nucor Steel Gallatin, a mainstay of the state’s primary metals industry, which produces rolled steel sheet used in various automotive applications, agricultural equipment, energy and other consumer products, will build a galvanizing line at its mill in Ghent, Kentucky. The company plans to invest $176 million and create 75 full-time jobs.

The new coating line will include in-line pickling capability. While the mill’s total annual capacity will remain at about 1.6 million tons, the new line will add value to the mill’s flat-rolled coils, prepping them for more specific and specialized uses. Work to install the coating line could begin in late 2017 or early 2018 with completion targeted in the first half of 2019.

“Adding a galvanizing line at Nucor Steel Gallatin will enhance our ability to make value-added products for our customers. Growing our share of the automotive market has been a priority for Nucor and this project will allow us to produce more products for our automotive customers,” said John Ferriola, Chairman, CEO & President of Nucor Corp. “We are pleased to be making additional investments in the state of Kentucky and the Ghent community. We would like to thank Governor Matt Bevin and other state and local officials for their support of this project.”

The new line will be able to coat steel sheet up to 72 inches wide, making it the widest hot-rolled galvanizing line in North America. Pickling steel removes scale to promote better adhesion during galvanization, which applies a layer of zinc to protect the underlying steel from rust. The new line will increase Nucor’s market share of coated steel in the Midwest.

“Nucor Steel Gallatin’s newest project could have gone to a Nucor mill in another state, but they chose Kentucky for all the reasons that set us apart,” said Governor Matt Bevin. “Our logistical advantages, access to automotive, specialty and general manufacturing customers, as well as a favorable business climate, will help Nucor fulfill its vision for continued growth. We welcome the jobs and economic impact this investment will make, and are grateful to Nucor for its confidence in Kentucky.”

The company purchased the Ghent mill for about $780 million in 2014 from Gerdau SA and ArcelorMittal. Nucor since invested $73 million in the facility, which currently employs 430.

To encourage Nucor’s investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved the company for tax incentives up to $4 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.

Additionally, KEDFA approved Nucor for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing. Nucor also can receive resources from the Kentucky Skills Network.

 

Source: areadevelopment.com

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