Nucor to Restart Production at Arizona Bar Mill;
Buys Ambassador, Recyclers
Nucor Corp. Charlotte, N.C., plans to begin steel bar production at its previously idle rolling mill in Kingman, Ariz. Nucor expects capital improvements necessary to restart production to total about $30 million and expects rolling operations to begin in Kingman by the second quarter of 2009.

Initial annual output of straight-length rebar, coiled rebar and wire rod should be about 250,000 tons. The Kingman mill will have the capability to increase annual production to more than 500,000 tons.

Nucor acquired North Star Steel's idled Kingman steel mill in 2003 for a purchase price of approximately $35 million. In 2004, Nucor decided that Kingman's melt shop would not be restarted and recorded a $13 million impairment charge for the melt shop assets. Kingman's rolling mill assets have been held available for restart whenever market conditions warranted. The decision to start rolling rebar and wire rod products is driven by growing demand in the southwestern U.S. market from both Nucor's outside customers and Nucor's expanding downstream rebar fabrication business.

“Kingman's very attractive capital cost for rolling steel will be leveraged by excess low-cost melting capacity at our existing bar mills,” says Dan DiMicco, Nucor's chairman, CEO and president. "Startup of our low-cost rolling mill in Arizona is an exciting growth project in the very attractive southwestern U.S. market for rebar and wire rod. Nucor Steel Kingman, LLC will build upon Nucor's position as North America's largest rebar producer. The restart of this facility expands our highly successful vertical integration business model."

Other acquisitions
In other action, Nucor’s wholly owned subsidiary, Harris Steel Inc., has completed the acquisition of Ambassador Steel Corp., Auburn, Ind., for a cash purchase price of approximately $185 million. The transaction includes the shares of Ambassador's affiliate, Delta Erecting. At closing, Harris Steel also repaid Ambassador's bank debt of approximately $136 million.

Ambassador is a fabricator and distributor of concrete reinforcing steel and related products. Founded in 1974, Ambassador has grown to be one of the largest independent fabricators and distributors of rebar in the United States. In 2007, Ambassador shipped 422,000 tons of fabricated rebar and distributed another 228,000 tons of reinforcing steel.

"We are excited and proud to welcome the Ambassador employees to the Nucor and Harris family," says Hamilton Lott, Nucor executive vice president. "Ambassador expands our rebar fabrication footprint through the Midwestern, Gulf Coast and southeastern regions of the U.S. Just as we expected, Harris Steel has proven to be a powerful downstream growth platform for Nucor. With the addition of Ambassador to the other acquisitions Harris Steel has completed, our rebar fabrication business has more than doubled since Nucor acquired Harris Steel in March 2007."

Another Nucor subsidiary, The David J. Joseph Company, has agreed to acquire the American Compressed Steel operations of Secondary Resources Inc., Kansas City, Mo. In addition, DJJ has completed the acquisition of Victoria, Texas-based Victoria Recycling.

American Compressed also operates scrap recycling facilities in St. Joseph and Sedalia, Mo. American Compressed employs 112 people and processes nearly 180,000 tons annually. Victoria Recycling processes over 24,000 tons annually.

"The addition of the American Compressed Steel and Victoria Recycling facilities demonstrates one more step toward helping Nucor achieve our long-term goal of expanding scrap sourcing, using DJJ as a platform for that growth," says DiMicco. Nucor is the largest purchaser of ferrous scrap in North America, with total scrap purchases of 22.8 million tons in 2007.