Nucor Corporation, the largest steel producer in the United States, plans to build its new tube mill on the site of its Nucor Steel Gallatin sheet mill in Ghent, Kentucky. The $164 million investment is expected to create more than 70 new full-time jobs.
Expected to be operational by the middle of 2023, the 396,000-square-foot tube mill will provide capacity to produce 250,000 tons of steel tubing annually, including hollow structural section tubing, mechanical steel tubing and galvanized solar torque tubing. The Kentucky location puts the new tube mill near expanding solar markets in the U.S. and the largest consuming regions for HSS steel tubing.
"With our recent investments to expand capacity at Nucor Steel Gallatin and add a galvanizing line, our Gallatin campus is an ideal location to build our new tube mill," said Leon Topalian, President and CEO of Nucor Corporation. "The new tube mill will allow us to better serve our customers in the construction, infrastructure and renewable energy markets."
To encourage the investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $2.25 million in tax incentives based on the company’s investment of $164 million and annual job creation targets.
"We have found Kentucky to be a great state to grow our business. We would like to thank Governor Beshear, officials with the Kentucky Cabinet for Economic Development, and local officials in Gallatin County for their support of this project and our other investments in the state," said Rex Query, Executive Vice President of Sheet and Tubular Products for Nucor Corporation.
Additionally, KEDFA approved Nucor for up to $800,000 in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
In addition, Nucor can receive resources from the Kentucky Skills Network and receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.