By Paul Ploumis
SEATTLE (Scrap Monster): Nucor Steel Gallatin, a subsidiary of Nucor Corporation has announced investment of $176 million towards building a new galvanizing and pickling line at its Ghent, Kentucky. The proposed investment by the company is expected to create nearly 75 full-time jobs in the region. The installation works of the new coating line at the mill located in Carroll County along the Ohio River is scheduled to begin by late-2017 or early-2018 and is expected to get completed during first half of 2019, subject to necessary approvals.
The new galvanizing line will be the widest hot-rolled galvanizing line in the entire North American region. It will be capable to coat sheets up to 72 inches wide. It will include an in-line pickling capability which will apply a layer of zinc to protect the underlying steel from rust. The investment promises expansion of Nucor Steel Gallatin’s annual production capabilities by at least 500,000 tons and is also is expected to add value to the mill’s flat rolled coil products. The new line will create synergies with other sheet mills and is expected to increase Nucor’s market share of coated products.
According to sources, the company has already been granted $4 million in tax incentives by the Kentucky Economic Development Finance Authority (KEDFA) through the Kentucky Business Investment program. The KEDFA has also approved additional $1 million in tax incentives through the Kentucky Enterprise Initiative Act. The company is also expected to receive recruitment and job placement services, job training incentives from the Kentucky Skills Network.
John Ferriola, chairman, CEO and president of Nucor Corp noted that the company is pleased to make additional investments in the state of Kentucky and the Ghent community. Addition of new line will enhance Nucor Steel Gallatin’s value-added product portfolio. This will enable the company to produce more products for its automotive customers, thereby helping the company to achieve its aim of growing automotive market share, Ferriola added. He also thanked Governor Matt Bevin and other state and local officials for their support.
Meantime, Governor Bevin stated that he is grateful to Nucor for its confidence in Kentucky. While highlighting the several jobs and economic impact of the investment, he noted that the state will continue to ensure favorable business climate in order to attract more investments in manufacturing sector. Also, Sen. Paul Hornback, of Shelbyville noted that Nucor’s multi-million dollar investment will have a major impact on local economy. Gallatin County Judge-Executive Ken McFarland hoped that the investment is a testimony of Nucor’s confidence in Gallatin County.
Nucor had purchased the Ghent mill from Gerdau SA and ArcelorMittal in 2014 for a sum of around $780 million. Since then, the company has invested $73 million in the facility. This is the single largest investment at the facility by the company. The mill currently employs 430 people and the investment will take the total employee count to more than 500.
Headquartered in Charlotte, N.C., Nucor Corporation is North America’s largest recycler and the nation’s largest producer of steel and steel products. The company employs nearly 24,000 people at about 200 facilities primarily located in the US and Canada, including several wholly owned subsidiaries.