Nucor To Build Full-Range Merchant Bar Mill In Illinois

 | Nov 15, 2017 08:18PM ET

Nucor Corporation (NYSE:NUE) is set to build a full-range merchant bar quality (MBQ) mill at its bar steel mill located in Bourbonnais, IL. The MBQ mill, which is likely to cost $180 million, will have an annual capacity of 500,000 tons. The project is expected to be completed in two years.
The setting up of the latest MBQ mill is in sync with the company’s long-term growth strategy. The move builds on the company’s position as a low-cost producer to displace tons which are being supplied by competitors outside the region. Additionally, it will strengthen Nucor’s product offerings of merchant bar, light shapes and structural angle and channel in markets in the central United States.
With this project, Nucor will be able to fully utilize the company's existing bar mill’s melt capacity and infrastructure. The project will also take advantage of ample scrap supply in the Midwest region and Nucor’s footprint in the central United States.
Nucor’s shares have lost 2.1% over the past six months underperforming the 11% gain of the

Nucor Corporation Quote

Zacks Rank & Stocks to Consider

Nucor currently carries a Zacks Rank #3 (Hold).

Some better-ranked companies in the basic materials space are Ingevity Corporation (NYSE:NGVT) , ArcelorMittal (NYSE:MT) and Westlake Chemical Corporation (NYSE:WLK) , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Ingevity has expected long-term earnings growth of 12%. Its shares have gained 33.5% year to date.

ArcelorMittal has expected long-term earnings growth of 11.3%. Its shares have rallied 27.5% year to date.

Westlake Chemical has expected long-term earnings growth of 8.4%. Its shares have moved up 61.8% year to date.

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