Nucor pushes back vs. Correnti's Big River Steel
Mar 18, 2013 | 03:54 PM
| Catherine Ngai
NEW YORK Nucor Corp. has pushed back against Big River Steel LLCs proposed $1.1-billion steel mill in Arkansas, claiming that an oversupplied steel market and competition over raw materials could hurt the Charlotte, N.C.-based steelmaker if plans move forward.
"The Big River Steel Project will directly impact the Nucor mills in Arkansas by driving up our costs for raw materials, energy, labor, rail car and truck transportation," Nucor said in a letter sent to legislators in both the state Senate and House of Representatives. The project could also impact Nucor by "reducing our operating rate, which will reduce the pay of our teammates, lowering our overall profit margin" as well as by possibly forcing the company to "shift orders, tons and jobs to our three sister divisions."
The pushback is in response to Big River Steels proposed venture in Osceola, Ark., announced earlier this year by the state governor, to produce steel products to serve the automotive, oil and gas, and electrical energy industries (amm.com, Jan. 29). The project is spearheaded by industry veteran John D. Correnti, who resigned as vice chairman, president, chief executive officer and director of Nucor in 1999.....
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