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Must-know: An overview of Nucor Corporation

Part 2
Must-know: An overview of Nucor Corporation (Part 2 of 11)

Must-know: An investor’s guide to Nucor’s operations

Nucor’s operations

As we have seen Nucor Corporation (NUE) is the largest U.S. steel company. It operates in the U.S. through its own facilities and subsidiaries. It also has an international presence. In this section we’ll look at Nucor’s various segments.

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U.S. locations

Nucor has its plants located across the U.S. It manufactures wire products, grating, and industrial fasteners. The U.S. operations are further divided into the following segments:

  • Vulcraft or Verco group – Vulcraft is the largest producer of open web steel joists, joist girders, and steel decks in the U.S. These products are used in construction of non-residential buildings.
  • Buildings group – This group manufactures custom engineered and standard metal building and components. It serves commercial buildings, retail centers, and schools.
  • Nucor cold finish – This division is the largest producer of cold finished bars in North America. Its products are used in industries like appliances, automotive, and electrical motors.

International operations

Nucor has an international presence in Brazil, Canada, Colombia, Italy, Mexico, Switzerland, United Arab Emirates (or UAE), and West Indies.

David J. Joseph

The David J. Joseph Company is engaged in scrap metal brokerage, ferrous and nonferrous metal recycling, and transportation services. It was acquired by Nucor in 2008. With over 70 scrap recycling facilities including 17 shredder locations, it’s a world leader in scrap metal brokerage. It also operates rail cars dedicated to scrap movement along with complete rail car fleet management and leases for third parties. We’ll discuss the strategic importance of this business going forward.

Harris Steel group

Harris Steel operates as a subsidiary of Nucor Corporation. It fabricates, installs, and distributes rebars in the United States and Canada. The acquisition of Harris Steel in 2007 has consolidated Nucor’s position in the rebar market. It’s important to note that rebars are used in the construction industry.

Skyline Steel

In 2012, Nucor acquired the entire equity interest in the Skyline Steel LLC and its subsidiaries. Skyline manufactures and distributes steel foundations in the U.S., Canada, Mexico, and Caribbean market. Its products are used in infrastructure and construction industries.

Along with Nucor (NUE), investors can also consider ArcelorMittal (MT), U.S. Steel Corporation (X), Reliance Steel & Aluminum (RS), and the SPDR S&P Metals and Mining ETF (XME) to get exposure to the steel industry.

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