Nucor (NUE+0.3%) says it will build a new micro mill to supply steel reinforcing bar to the South Atlantic region, anticipating continued strength for rebar used primarily in the construction of roads, buildings, sidewalks and other structures.
The mill will have an annual capacity of 430K tons and cost ~$350M to build.
Nucor operates 15 bar mills located across the U.S., including two similar regional micro-mills in Florida and Missouri; the company's annual bar steel production capacity is estimated at 9.5M tons.
"The East Coast market will be in need of additional rebar supply in the coming years, particularly with the recent passage of the infrastructure spending bill," CEO Leon Topalian says.