FRANKFORT, Ky. (May 25, 2017) – Gov. Matt Bevin today announced that Nucor Steel Gallatin, a mainstay of the state’s primary metals industry, which produces rolled steel sheet used in various automotive applications, agricultural equipment, energy and other consumer products, will build a galvanizing line at its mill in Ghent with an estimated $176 million investment creating 75 full-time jobs.
“Nucor Steel Gallatin’s newest project could have gone to a Nucor mill in another state, but they chose Kentucky for all the reasons that set us apart,” said Gov. Bevin. “Our logistical advantages, access to automotive, specialty and general manufacturing customers, as well as a favorable business climate, will help Nucor fulfill its vision for continued growth. We welcome the jobs and economic impact this investment will make, and are grateful to Nucor for its confidence in Kentucky.”
The new coating line will include in-line pickling capability. While the mill’s total annual capacity will remain at about 1.6 million tons, the new line will add value to the mill’s flat-rolled coils, prepping them for more specific and specialized uses. Work to install the coating line could begin in late 2017 or early 2018 with completion targeted in the first half of 2019.
“Adding a galvanizing line at Nucor Steel Gallatin will enhance our ability to make value-added products for our customers. Growing our share of the automotive market has been a priority for Nucor and this project will allow us to produce more products for our automotive customers,” said John Ferriola, chairman, CEO and president of Nucor Corp. “We are pleased to be making additional investments in the state of Kentucky and the Ghent community. We would like to thank Governor Matt Bevin and other state and local officials for their support of this project.”
The new line will be able to coat steel sheet up to 72 inches wide, making it the widest hot-rolled galvanizing line in North America. Pickling steel removes scale to promote better adhesion during galvanization, which applies a layer of zinc to protect the underlying steel from rust. The new line will increase Nucor’s market share of coated steel in the Midwest.
Headquartered in Charlotte, N.C., Nucor Corp. 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. In 2016, Nucor produced 21.3 million tons of steel. The company has three segments: steel mills, steel products and raw materials.
Founded in 1955, Nucor Corp. traces its roots to 1905 when Ransom E. Olds, Oldsmobile’s creator, left his company after a stockholders dispute. He formed REO Motor Co., which evolved into the Nuclear Corporation of America, and ultimately became Nucor in 1971.
In Kentucky, Nucor and its affiliates employ approximately 2,000 people. Nucor companies in the state include Nucor Steel Gallatin, Steel Technologies LLC, Republic Conduit, and Harris Rebar. Nucor also owns the David J. Joseph Co. and its six subsidiary River Metals Recycling facilities across the state, which collect and recycle scrap metal.
The company purchased the Ghent mill for about $780 million in 2014 from Gerdau SA and ArcelorMittal. Nucor since invested $73 million in the facility, which currently employs 430.
Sen. Paul Hornback, of Shelbyville, expressed gratitude for the company’s dedication to the state.
“I congratulate Nucor on this new investment and thank this well-established Kentucky company for continuing to do business in our state,” Sen. Hornback said. “Nucor’s multi-million dollar investment will have a major impact on our local economy, and I look forward to the prosperity this new job creation and innovation will bring to our district.”
Rep. Rick Rand, of Bedford, said the investment and new jobs demonstrates Kentucky’s strengths as a location for business investment.
“I’m appreciative of Nucor Steel Gallatin’s continued investment in the Ghent Mill, and congratulate their efforts to diversify the production lines for specialized use,” said Rep. Rand. “I believe this announcement demonstrates the company’s continued faith in our regional workforce, and the talented men and women who have shown throughout the years that they know how to manufacture quality rolled steel with skill and pride.”
Gallatin County Judge-Executive Ken McFarland said he is eager to build an even stronger connection with the company.
“It’s great to see the confidence Nucor has shown in Gallatin County. We look forward to deepening the relationship between us,” Judge McFarland said. “We know this new endeavor will be a great facility, especially for our citizens and our county, best of good fortune for all the Nucor folks.”
To encourage Nucor’s investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) in May preliminarily approved the company for tax incentives up to $4 million through the Kentucky Business Investment program. The performance-based incentive allows a company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
Additionally, KEDFA approved Nucor for up to $1 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
Nucor also can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal year 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.
For more information on Nucor, visit www.nucorsteel.com
A detailed community profile for Gallatin County can be viewed at http://bit.ly/GallatinCo
The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2015 totaled a state record $5.1 billion, spurring more than 16,000 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.