Nucor’s new micro mill will produce rebar, which is used primarily in concrete reinforcement for the construction of roads, buildings, bridges and other structures. The manufacturer’s steel bar products are said to contain 97% recycled content. Photo Credit: Nucor

Industrial steel manufacturer Nucor Corporation plans to build a $350 million rebar micro mill in Lexington, N.C., to be served by Winston-Salem Southbound Railway, which is jointly owned by Norfolk Southern (NS) and CSX.

With an annual capacity of 430,000 tons, the new mill is slated to employ approximately 200 full-time workers when operational and create an additional 500 temporary jobs during construction, which is expected to take two years pending permit and regulatory approvals, Nucor reported on April 7. 

North Carolina Railroad Company (NCRR), through its economic development initiative NCRR Invests, is providing approximately $750,000 to assist with construction of a new rail spur and on-site loading, unloading and storage tracks. “The new rail modifications will increase activity [in the state] by 2,000 additional railcars each year,” NCRR reported.

Nucor is headquartered in Charlotte, N.C., and has manufacturing locations across the U.S. It directly and through affiliates employs about 800 North Carolinians at a steel plate mill in Hertford County; a Harris Rebar fabrication facility in Lumberton; and three scrap recycling facilities in the state, which will provide raw materials for the new mill in Lexington. Through The David J. Joseph Company, Nucor also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron/direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap.

“The corridor between Washington, D.C., 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. “Nucor Steel Lexington will produce steel with nearly 100% recycled content, which means our new, modern infrastructure will be made with the most sustainable steel available anywhere in the world.”

“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 Cooper said. “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.”

“Rail infrastructure is extremely important in attracting high-quality manufacturers and distributors that bring high-paying jobs to our communities,” NCRR President and CEO Carl Warren said. “Occasionally those companies need room to expand their site footprint or operation. Through NCRR Invests, we are able contribute to an effort including Davidson County, the North Carolina Department of Commerce, the Economic Development Partnership of North Carolina, and many others who made this amazing opportunity a reality for the people of Davidson County.”

Additional project partners include the North Carolina General Assembly, North Carolina Community College System, North Carolina Department of Transportation, North Carolina Department of Revenue, GoldenLEAF Foundation, Winston-Salem Southbound, Davidson County Economic Development Commission, Davidson County, city of Thomasville, city of Lexington, and Davidson Water Inc.

In related developments, Nucor in February reported that it would start construction this year on a $2.7 billion-plus sheet steel mill in Mason County, W.Va., to be served by CSX.

Rail Group News offers news and analysis from Railway Age, IRJ and RT&S by email.