Nucor to build rebar mill in Florida
Houston, 12 March (Argus) — US steelmaker Nucor will build a $240mn rebar micro mill in central Florida.
The mill in Frostproof, Florida, is expected to begin operations in 2020 with an estimated annual capacity of 350,000 short tons/yr.
Nucor said the Polk county location, about 75 miles east of Tampa, will give it a logistical advantage over its competitors, who are shipping rebar into the region from long distances.
Polk county voted in February to waive property taxes at the Nucor site over 10 years. The company said the estimated $13.7mn incentive was a "material inducement" in its decision to build the mill.
Nucor already has a strong base of local ferrous scrap to feed the mill. The company owns Tampa-based scrap recycler Trademark Metals Recycling through its David J Joseph raw materials subsidiary. Trademark operates 23 locations in Florida, including six shredders.
Nucor also expects strong demand in the area. Florida is expected to be among the top states in the US for nonresidential construction starts this year, according to Commercial Metals (CMC), another US rebar producer.
Nucor in November said it would build a rebar micro mill outside of Kansas City, Missouri, where it also owns scrap metal processing assets. This mill is expected to start up in 2019.
A relatively recent trend, rebar micro mills are smaller and more product- and regionally-focused than minimills with a capacity of 200,000-500,000 metric tonnes/yr. Micro mills operate at lower costs and require less time and capital investment to construct.
Nucor has an estimated 40pc share of the 10mn-11mn st/yr capacity US rebar market.