Source: Scrap Monster
Charlotte, North Carolina headquartered Nucor Corp. has announced its decision to invest nearly $180 million at its existing Nucor Steel Kankakee Inc. bar steel mill in Bourbonnais, Illinois which currently produces steel reinforcing bars.
The company plans to build a full-range merchant bar quality (MBQ) mill, thereby adding angles, channels and other steel shapes to its product portfolio. The construction of the new mill, having a capacity of around half-a-million tons per annum, is expected to get completed in nearly two years. Being located in enterprise zone, Nucor is likely to receive tax breaks on certain equipment purchases and utility bills. In addition, the company is likely to receive tax break phased over five years for the property.
Earlier during mid-September, the Board of Directors had given approval to expand one of its merchant bar mills located in Illinois or Ohio. Initially, the company had planned to locate the new mill at its Marion, Ohio facility, but had later decided to select Bourbannais mill as the site for expansion.
John Ferriola, chairman, CEO and president of Nucor stated that the new mill fits well to its long-term profitability strategy. The new mill is expected to further enhance the company’s product offering in the region, thereby reinforcing its position as the undisputed market leader. The investment will help Nucor to expand its footprints in the US Midwest and Central regions, Ferriola added. The addition of the new mill to Nucor’s other full-range bar mills makes it strategically located to supply key markets with diversified products.
The Nucor press release noted that Nucor Steel Kankakee Inc. will continue to remain as the region’s key supplier of quality steel reinforcing bar products. Incidentally, the new project is expected to improve the melt capacity and infrastructure facilities at the existing mill. In return, the new MBQ mill will capitalize on the already established operational and commercial capabilities to churn out new products that enjoy healthy market demand.
Johnny Jacobs, vice president and general manager of Nucor Steel Kankakee thanked Gov. Rauner and other state and local officials for the support extended to the project. He added that the company is extremely excited to bring new investments and jobs to the Kankakee community. Upon opening of the facility, scheduled to take place in 2019, the mill would provide additional 75 jobs. The steel mill complex currently employs 475 workers.
Meantime, State Rep. Lindsay Parkhurst, R-Kankakee thanked Nucor for its commitment to the community and the state of Illinois.