Nucor Announces Plan to Close Nuconsteel

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Jan 05, 2012, 09:45 ET

CHARLOTTE, N.C., Jan. 5, 2012 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it will exit the business of fabricating light gauge steel framing and therefore will close its Nuconsteel division. Nuconsteel has operations in Denton, Texas, and Dallas, Georgia. Nucor entered the residential and commercial light gauge steel framing business in November 2001 with the acquisition of Itec Steel, Inc., which became Nuconsteel shortly thereafter. Nucor expects to close Nuconsteel's facilities in the spring of 2012, after meeting current customer contractual obligations.

"This decision was a very difficult one due to the impact it has on our employees at Nuconsteel. We continually evaluate our business segments for long-term strategic fit and earnings potential. The fabrication of residential and commercial light gauge steel framing does not offer the returns or scale necessary for Nucor to remain in the business," said Dan DiMicco, Nucor's Chairman and Chief Executive Officer.

"The Nuconsteel team is a group of hard working and dedicated individuals. We very much appreciate the persistent and significant efforts of those teammates over the years and, where possible, we will encourage those employees to seek other opportunities within Nucor," said Hamilton Lott, Executive Vice President of Fabricated Construction Products.

Headquartered in Charlotte, N.C., Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel - in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

SOURCE Nucor Corporation