Steel producer Nucor plans to invest $350 million to locate a new micro mill steel plant in Lexington, Davidson County, that will produce steel bar and rebar.
“Manufacturing is the heartbeat of North Carolina’s economy, thanks to our skilled workers and the workforce training systems that support them,” North Carolina Gov. Roy Governor Cooper said in an April 7 statement. “Nucor already calls North Carolina home and their decision to expand here is great for our domestic supply chain that supports our fast-growing economy.”
Nucor, with headquarters in Charlotte, manufacturers a wide variety of steel and steel products, including carbon and alloy steel sold as bars, beams, sheet and plate, and hollow section tubing, among many other formats.
The company — asserted to be the largest steel producer in the US, is North America’s largest recycler, using scrap steel as its primary raw material. Nucor Steel Lexington is estimated to produce as much as 430,000 tons of rebar a year to meet increasing demand for the company’s products.
“We are very excited to grow our steel business here in our home state of North Carolina. The corridor between Washington, DC and Atlanta is one of the fastest growing regions in our nation, and new federal spending for infrastructure will further increase demand for rebar in the region,” Nucor president and CEO Leon Topalian said in the statement. “Nucor Steel Lexington will produce steel with nearly 100% recycled content, which means our new, modern infrastructure will be made with the cleanest sustainable steel available anywhere in the world.”
The North Carolina Department of Commerce coordinated the state’s support for the company during its site evaluation and decision-making process.
Nucor’s project in North Carolina will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project is estimated to grow the state’s economy by $1.2 billion. Using a formula that takes into account the new tax revenues generated by 180 new jobs, and a required investment of $310 million, the JDIG agreement authorizes the potential reimbursement to the company of up to $3,335,400, spread over 12 years.
State payments only occur following performance verification by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets.
Because Nucor chose a site in Davidson County, classified by the state’s economic tier system as Tier 2, the company’s JDIG agreement also calls for moving $370,600 into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities across the state finance necessary infrastructure upgrades to attract future business.
Partnering with the North Carolina Department of Commerce and the Economic Development Partnership of North Carolina on this project were the North Carolina General Assembly, the North Carolina Community College System, the North Carolina Department of Transportation, the North Carolina Department of Revenue, the North Carolina Railroad Company, the GoldenLEAF Foundation, the Winston-Salem Southbound Railway, Davidson Water Inc., Davidson County, the City of Thomasville, the City of Lexington, and the Davidson County Economic Development Commission.