Nucor Corporation NUE has declared the installation of a $75 million Quench and Self-Tempering (“QST”) process at Nucor-Yamato Steel Company (“NYS”), which is a joint venture between Nucor and Yamato Kogyo Co. Ltd. This is to be used on 1.4 million tons of Mill 2 rolling capacity.
The announcement was jointly made by Nucor’s Chairman, CEO and President, John Ferriola, and Arkansas Governor, Asa Hutchinson, at the Nucor-Yamato Steel mill in Blytheville, AR. The project is anticipated to go online in the second half of 2016.
After successful installation, NYS will be capable of producing ASTM A913 Grade 65 and Grade 70 structural sections with the QST process, specializing in high-strength, low-alloy grade chemistry that offers exceptional weldability along with toughness at low temperatures. The material is suitable for use in high-rise buildings, long-span trusses for projects such as convention centers or stadiums, and for all projects where seismic design is a significant factor.
Additionally, high strength in A913 will permit lighter foot weights, reducing the overall weight and material costs for the manufacturer, thus making steel more competitive against concrete and wood.
According to John Ferriola, with this investment, NYS will retain its leadership in the wide-flange beam market to serve its customers across the U.S. Further, the investment is significant as it will help the economy of Arkansas as well as over 900 teammates and families of NYS, and supply chain to remain an active part of Northeast Arkansas.
Zacks Rank
Nucor currently carries a Zacks Rank #3 (Hold).
Better-ranked stocks in the basic materials sector include NN Inc. NNBR, ArcelorMittal MT and ThyssenKrupp AG TYEKF, all carrying a Zacks Rank #2 (Buy).
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