Nucor Wins Incentives to Further Expand, Add Jobs in Gallatin Co.
Nucor Tubular Products announced plans to build a $164 million tube mill in Gallatin County, creating 72 full-time jobs.
The announcement was celebrated last week.
“Nucor continues making a tremendous impact in our state, serving as both a great corporate citizen and a committed partner in providing meaningful opportunities for Kentuckians,” Gov. Beshear said. “(Thursday's) announcement that the company will create 70-plus Kentucky-resident jobs boasting average salaries over $70,000 is very encouraging news for the families in Gallatin County and the surrounding region. I appreciate Nucor’s commitment to Kentucky during such an important year for the commonwealth.”
Once operational, 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. These products will serve the construction, infrastructure and renewable energy industries.
The location near Ghent will position the new tube mill near expanding solar markets in the U.S. and the largest consuming regions for hollow structural sections tubing. Company leaders expect construction to begin this summer, with completion currently slated for mid-year 2023.
“We are excited to continue to expand our business in the state of Kentucky. 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 Nucor Corp. President and CEO Leon Topalian. “We would like to thank Gov. 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.”
With this investment, Nucor will add to its already significant presence in Gallatin County.
The company recently completed the first phase of an $826 million expansion project at its Nucor Steel Gallatin mill near Ghent. That mill, which produces flat-rolled steel coils, is now in the middle of its second phase.
In total, the Gallatin steel mill expansions are creating 145 full-time jobs.
The company is growing elsewhere in Kentucky as well.
In October, Gov. Beshear and Nucor officials celebrated the groundbreaking of the company’s 400-job, $1.7 billion steel plate manufacturing mill in Meade County, a 1.5-million-square-foot operation expected to open in 2022.
Headquartered in Charlotte, N.C., Nucor is North America’s largest recycler and the nation’s largest steel and steel products producer. The company employs over 26,000 people at more than 300 facilities, primarily located in North America.
In Kentucky, Nucor and its affiliates employ approximately 2,000 people at numerous facilities, including Nucor Steel Gallatin, Nucor Tubular Products Louisville, Harris Rebar and a 50% ownership stake in Steel Technologies. Nucor also owns the David J. Joseph Co. and its multiple recycling facilities across the state doing business as Rivers Metals Recycling that collect and recycle scrap metal.
Gallatin County Judge/Executive Jon Ryan Morris said Nucor continues making a significant positive impact in his community.
“We’re very excited about this expansion by Nucor, one of our region’s largest employers and a terrific community partner,” said Judge/Executive Morris. “In addition to the quality careers the company offers our residents, Nucor’s support for our first responders and schools is second to none. Our community is better because Nucor is here, and we certainly remain committed to supporting them and all our existing businesses here in Gallatin County.”
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 targets of:
- Creation and maintenance of 72 Kentucky-resident, full-time jobs across 10 years; and
- Paying an average hourly wage of $45.50 including benefits across those jobs.
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.
By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.
In addition, Nucor can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives.