Steel Mills
Nucor shuttering Chicago tubular facility
Written by Ethan Bernard
September 30, 2024
Nucor plans to close its Nucor Tubular Products (NTP) Chicago facility and will lay off 47 workers.
Layoffs will begin on Wednesday, Nov. 27, according to a WARN Notice filed with the state of Illinois.
A Nucor spokeswoman confirmed on Monday the Charlotte, N.C.-based steelmaker is restructuring its tubular products business. This includes ending operations at its Chicago production facility.
“The hollow structural steel (HSS) tube market has evolved in recent years, particularly in the smaller-size segment produced at the NTP Chicago facility,” the spokeswoman said in a statement to SMU on Monday.
She noted that as part of the company’s long-term growth strategy, Nucor recently opened a “state-of-the-art tube facility” in Kentucky.
“This new facility, along with our existing NTP facilities in Illinois and Alabama, enables us to produce a broader range of products,” the spokeswoman added.
Nucor plans to maintain a Nucor Tubular Products sales and administrative office in the Chicago area.
“We are working with affected production teammates to find other opportunities within our company,” the spokeswoman said.
Background
The Chicago plant was opened in 1972 as Independence Tube Corp.’s first location, according to Nucor’s website.
Recall that Nucor acquired Independence Tube in 2016 for $435 million. Independence was then a leading independent manufacturer of hollow structural sections (HSS), a type of steel tubing widely used in construction.
Nucor went on to acquire other independent steel tube producers. They included Birmingham, Ala.-based Southland Tube (2016 for $130 million), Republic Conduit (2016 for $335 million), and Hannibal Industries (2021 for $370 million).
One of the goals of that $1.27-billion buying spree was to provide a value-added home to hot-rolled coil produced by Nucor’s steel mills.
Ethan Bernard
Read more from Ethan BernardLatest in Steel Mills
Nippon won’t import slabs to US if U.S. Steel deal goes through
Nippon Steel has affirmed that if its $14.9-billion bid for U.S. Steel proves successful, the Japanese steelmaker will not import overseas-produced slabs to the US.
AISI: Raw steel production falls to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.