Nucor Enters Agreement to Purchase Paint Line Facility in Arkansas
CHARLOTTE, N.C., Oct. 28, 2020 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) has entered into an asset purchase agreement to acquire the Precoat Metals Corporation's paint line facility located in Armorel, Arkansas. The paint line facility, located near the Nucor Steel Arkansas sheet mill campus, has a capacity of approximately 250,000 tons per year. Nucor considered building a greenfield paint line before deciding to acquire the Precoat Metals facility.
"Becoming a direct supplier of pre-painted sheet products is part of the execution of our long-term strategy of adding value for our customers by streamlining their procurement process. Purchasing this paint line has several advantages over building a new facility, including greatly accelerating Nucor's entrance into the painted products market with existing capacity and an experienced team. We will be able to diversify our product and market mix sooner, bringing value-added products to customers in construction, HVAC, garage door, lighting, transportation and other key pre-paint markets," said Troy Brooks, Vice President & General Manager of Nucor Steel Arkansas. "We are excited to welcome those Armorel teammates who will be joining the Nucor family."
Nucor Steel Arkansas opened in 1992 and is capable of producing approximately 2,650,000 tons of hot-rolled sheet steel annually for automotive, appliance, construction, pipe and tube and many other applications. Nucor Steel Arkansas recently completed construction of a new speciality cold mill complex and is currently building a new 3rd generation advanced, high-strength steel galvanizing line with an annual capacity of approximately 500,000 tons which will begin operating in 2021.
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "anticipate," "believe," "expect," "project," "may," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. These forward-looking statements reflect the Company's best judgment based on current information, and although we base these statements on circumstances that we believe to be reasonable when made, there can be no assurance that future events will not affect the accuracy of such forward-looking information. As such, the forward-looking statements are not guarantees of future performance, and actual results may vary materially from the projected results and expectations discussed in this news release. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including pressure from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing steel prices and changes in the supply and cost of raw materials, including pig iron, iron ore and scrap steel; (4) market demand for steel products, which, in the case of many of our products, is driven by the level of nonresidential construction activity in the United States, as well as prevailing domestic prices for oil and gas; (5) energy costs and availability; and (6) the impact of the COVID-19 pandemic. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in "Item 1A. Risk Factors" of Nucor's Annual Report on Form 10-K for the year ended December 31, 2019 and in "Item 1A. Risk Factors" of Nucor's Quarterly Report on Form 10-Q for the quarter ended July 4, 2020. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them, except as may be required by applicable law.
SOURCE Nucor Corporation
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