Overview of Nucor Corp.
Nucor is the largest steel company in the United States. It has over 27 million tons of production capacity. It operates in the United States through its own facilities and subsidiaries. It also has operations in Europe, the United Arab Emirates, and Canada. Nucor is the most profitable and valuable steel company in the U.S.
In this series, we’ll cover Nucor Corp.’s recent acquisition of Gallatin Steel. Nucor announced the purchase of Gallatin Steel for $770 million. Gallatin Steel was part-owned by ArcelorMittal (MT), which is the biggest steel company globally.
Let’s look at some key facts related to Nucor before proceeding to this strategic deal.
Nucor: A pioneer in electric arc furnaces
Nucor has been a pioneer in technological innovations. It has a history of backing new technologies that other companies doubted. In the 1970s, when most U.S. companies were making steel through integrated steel mills, Nucor pioneered steelmaking in mini mills using electrical arc furnaces (or EAFs).
Nucor manufactures both raw steel and steel products like fasteners, girders, joists, and decks. The chart above shows the key segments for Nucor. It has a strong presence in the non-residential construction market and is the largest supplier in this segment. But it wasn’t a strong player in the tubular steel space, and this is where Gallatin will help Nucor.
In 2008, Nucor acquired David J. Joseph Company, which is the world leader in scrap metal brokerage. This deal not only helps Nucor secure steel scrap for its steel plants but also in earning brokerage income from third parties.