Nucor Breaks Ground on $425 Million Galvanizing Line in South Carolina

On Thursday, May 2, 2024, Nucor Steel Berkeley broke ground on a new $425 million galvanizing line at its sheet steel mill in Huger, South Carolina. Governor Henry McMaster attended the groundbreaking ceremony to mark the beginning of this major expansion project, which was announced in 2022. The significant investment is expected to create more than 50 new full-time jobs and start up in mid-2025.

Why this matters: This investment in sustainable steelmaking practices aligns with the growing demand for environmentally friendly materials in various industries, contributing to a more eco-friendly future. The expansion of Nucor's capabilities will also have a positive impact on the local economy and job market, demonstrating the importance of supporting domestic manufacturing and infrastructure development.

The new galvanizing line will support Nucor's strategy to expand its capabilities and grow its participation in the automotive and consumer durables markets. The line will put a zinc coating on sheet metal to protect against corrosion and extend the metal's lifespan. It will be able to produce galvanized steel up to six feet wide and will have an annual capacity of about 500,000 tons.

During the groundbreaking ceremony, Rex Query, Nucor's Executive Vice President of Sheet Products, stated, "This capability broadens the mix of higher margin value-added products that Nucor can provide to our customers. It also allows us to take advantage of the need our customers have for sustainable steel — sustainable steel being something that Nucor excels at producing."

The Berkeley County mill produces flat-rolled steel, which has hundreds of everyday uses, including parts for cars, water heaters, lawnmowers, appliances, and more. With the addition of the new galvanizing line, the plant's total annual capacity will increase to 3.5 million tons of flat-rolled steel. The project brings Nucor's total investment in the Berkeley County plant to over $1.3 billion since its opening in 1996.

Nucor's recycling-based steelmaking process produces steel with much lower carbon emissions than traditional blast furnace steelmakers. The company is North America's largest steel producer and recycler, recycling approximately 20 million tons of scrap metal annually to make new steel products. This sustainable approach to steelmaking aligns with the growing demand for environmentally friendly materials in various industries.

The Nucor Steel Berkeley mill currently employs nearly 1,000 people and utilizes the services of up to 350 additional contractors working on-site on any given day. The new galvanizing line is expected to add 50 more full-time jobs to the plant's workforce. The S.C. Coordinating Council for Economic Development has approved a $400,000 grant to help pay for the project's costs, and Berkeley County Council has approved tax breaks for Nucor. State-owned electric and water utility Santee Cooper will also provide a grant to help pay for upgrades at the site.

The groundbreaking of Nucor's new galvanizing line in South Carolina marks a significant milestone for the company and the state's manufacturing industry. The $425 million investment will expand Nucor Steel Berkeley's capabilities, increase its annual production capacity to 3.5 million tons of flat-rolled steel, and create over 50 new jobs. With its focus on sustainable steelmaking practices and the support of state and local government, Nucor is well-positioned to meet the growing demand for environmentally friendly steel products in the automotive and consumer durables markets.

Key Takeaways

• Nucor Steel Berkeley breaks ground on $425 million galvanizing line.
• Project to create 50+ new full-time jobs and start up in mid-2025.
• New line to produce 500,000 tons of galvanized steel annually.
• Investment aligns with growing demand for environmentally friendly materials.
• Nucor's total investment in Berkeley County plant now exceeds $1.3 billion.