Nucor Tubular has agreed to a land swap next to its Marseilles, Illinois, mill that would accommodate an expansion if the company chooses to pursue one, according to a city official.
If the Marseilles city council approves the plan, Nucor would trade six acres it owns along the Illinois River for 14 city-owned acres adjacent to the tube mill, city clerk Lesley Hart told Fastmarkets AMM on Wednesday November 21.
"We had land they could potentially use for an expansion, and the land they have we want to use for a boat launch," Hart said.
A public hearing on the idea was held during a city council meeting on November 20. No one raised an objection to swapping the tracts, Hart said. The council has scheduled a final vote for December 5.
No formal mill expansion plan has been submitted to the city, Hart said. A spokesperson at Nucor's headquarters in Charlotte, North Carolina, did not respond to a request for company comment on Wednesday.
The Marseilles mill produces structural tubing, pipe and conduit. It was part of the former Independence Tube, a Chicago-based company that Nucor acquired in 2016. The plant is 700,000 square feet - the equivalent of about 16 acres.
Fastmarkets AMM's pricing assessment for US domestic A500 hollow structural sections stands at $1,100-1,130 per ton fob mill. The price is up 23.9% since November 2017.