Nucor to build bar mill in south.

Nucor Corp., Charlotte, N.C., has announced plans to construct a special bar quality (SBQ) products steel mill in the Southern United States with an estimated capacity of 850,000 tons.

The facility will produce high-quality carbon and alloy rounds and round-cornered squares from 3 inches to 9 inches in size for the automotive, heavy equipment and service center markets.

Nucor is currently considering several locations for the new mill. Construction is expected to begin after resolution of the location, regulatory approvals, tax matters and various contracts.

"This is a great opportunity to position Nucor as a market leader in special bar quality products," Daniel DiMicco, Nucor's chairman, president and CEO, says. "We have consistently said over the last six years that we would not build a greenfield steel mill unless we could take advantage of a unique market niche and/or a significantly better cost structure compared to the competition. This project definitely fits that strategy."

D. Michael Parrish, executive vice president of Nucor, says, "I'm very excited about this project because it complements our Nebraska SBQ Mill and gives us one of the most diverse SBQ product offerings from 7/32-inch to 9-inch rounds, all with a minimum of 5:1 reduction ratio. It really puts an emphasis on quality with bloom casting and vacuum degassing."