Nucor Launches Econiq™ Net-Zero Steel
6 October 2021
Nucor Corporation announced today the launch of Econiq™, a line of net-zero carbon steel products. Building the green economy and the necessary infrastructure requires clean, advanced steel products. By introducing Econiq, Nucor is providing confidence for steel consumers to know they are purchasing the lowest greenhouse gas (GHG) emissions steel product available. A first of its kind at scale for the United States steel industry, Econiq will be available across Nucor's steelmaking product lines, the broadest and most diversified offerings in the U.S. market.
"The green economy is being built on steel, and Nucor is proving that it can be produced in a sustainable way that can help the world meet its climate goals," said Leon Topalian, President & Chief Executive Officer of Nucor Corporation. "For more than 50 years, Nucor has been built on a sustainable model of recycling steel to produce new steel and steel products. The addition of Econiq is a logical extension to our innovation legacy in the steel industry. Further, we are pleased to announce that General Motors, an iconic American manufacturer, will be Nucor's first customer for Econiq beginning in the first quarter of 2022."
"We commend Nucor for their commitment to net-zero carbon steel solutions and look forward to working with them to utilize their innovative Econiq steel in our vehicles. It brings GM one step closer to its vision of a zero emissions future," said Shilpan Amin, GM vice president of Global Purchasing and Supply Chain. "General Motors is excited to be Nucor's first customer for Econiq as we work to integrate sustainability into all aspects of our supply chain."
General Motors will receive the Econiq net-zero steel beginning in Q1 2022, and it is projected that all steel purchased by GM from Nucor will be net carbon neutral by the end of 2022.
The United States is the cleanest place in the world to make steel, accounting for less than 2% of the GHG emissions from the global steel industry. Nucor's use of recycled scrap-based electric arc furnace technology at all of its 24 U.S. mills enables us to operate at 70% below the current GHG intensity for the steel industry and meet even the most aggressive emission intensity benchmarks that are part of the Paris Climate Agreement. Econiq steel will extend that leadership even further, utilizing 100% renewable electricity and high-quality carbon offsets to negate any remaining Scope 1 and 2 emissions.
The Econiq brand will be available across the complete line of Nucor steelmaking products and initial quantities will be limited. We expect immediate interest from automotive and construction customers, and from across the renewable energy and infrastructure sectors.
To learn more about Econiq, visit https://nucor.com/econiq.
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "anticipate," "believe," "expect," "intend," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and, although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing market steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) the availability and cost of electricity and natural gas, which could negatively affect our cost of steel production or result in a delay or cancellation of existing or future drilling within our natural gas drilling programs; (5) critical equipment failures and business interruptions; (6) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States; (7) impairment in the recorded value of inventory, equity investments, fixed assets, goodwill or other long-lived assets; (8) uncertainties surrounding the global economy, including excess world capacity for steel production; (9) fluctuations in currency conversion rates; (10) significant changes in laws or government regulations affecting environmental compliance, including legislation and regulations that result in greater regulation of greenhouse gas emissions that could increase our energy costs, capital expenditures and operating costs or cause one or more of our permits to be revoked or make it more difficult to obtain permit modifications; (11) the cyclical nature of the steel industry; (12) capital investments and their impact on our performance; (13) our safety performance; and (14) the impact of the COVID-19 pandemic and any variants of the virus. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2020. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.