Nucor pushes back vs. Correnti's Big River Steel

Mar 18, 2013 | 03:54 PM | Catherine Ngai

Tags  John Correnti, Big River Steel, Nucor, Arkansas mill, electrical steel, RG Steel, Thyssenkrupp, Catherine Ngai

NEW YORK — Nucor Corp. has pushed back against Big River Steel LLC’s proposed $1.1-billion steel mill in Arkansas, claiming that an oversupplied steel market and competition over raw materials could hurt the Charlotte, N.C.-based steelmaker if plans move forward.

"The Big River Steel Project will directly impact the Nucor mills in Arkansas by driving up our costs for raw materials, energy, labor, rail car and truck transportation," Nucor said in a letter sent to legislators in both the state Senate and House of Representatives. The project could also impact Nucor by "reducing our operating rate, which will reduce the pay of our teammates, lowering our overall profit margin" as well as by possibly forcing the company to "shift orders, tons and jobs to our three sister divisions."

The pushback is in response to Big River Steel’s proposed venture in Osceola, Ark., announced earlier this year by the state governor, to produce steel products to serve the automotive, oil and gas, and electrical energy industries (amm.com, Jan. 29). The project is spearheaded by industry veteran John D. Correnti, who resigned as vice chairman, president, chief executive officer and director of Nucor in 1999.....





Latest Pricing Trends

Poll

Are you stocking more inventory today than 18 months ago?

Yes
No


View previous results