Speech Outline. Nucor Overview Steel Industry Outlook 2009-2013 U.S. Economy Outlook. Nucor Overview. Nucor’s History.
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Ransom E. Olds, creator of the Oldsmobile, had a dispute with stockholders and left his own company – Olds Motor Works. He soon formed Reo Motor Company, which evolved into the Nuclear Corporation of America and ultimately Nucor.
Nuclear Corporation acquires Vulcraft, an unassuming producer of steel joists and girders. To run the newly acquired Vulcraft, Nuclear Corporation hires Ken Iverson as CEO.
Nucor’s first mini mill to produce merchant steel products, located in Darlington, SC, goes into production
Nucor ushers in a new era of steelmaking as thin-slab technology goes on-line at the new mini mill in Crawfordsville, Indiana. It is the first mini mill in the world to make quality flat rolled steel using the technology. Nucor also established a joint venture beam facility with Yamato Kogyo of Japan, utilizing near net shape casting.
Dan DiMicco is named the new president and CEO of Nucor. DiMicco has led the company through an unparalleled period of growth. The company moved from green field growth to acquisition based growth.
Another world first: Nucor’s Castrip micro mill goes on-line in Crawfordsville, Indiana. This revolutionary technology instantly transforms molten steel directly into steel sheets in just one remarkable step. Compared to an integrated steelmaking facility, the Castrip process consumes about 95% less energy and emits less than one-tenth the greenhouse gases.
Nu-Iron DRI Facility
North America’s most DIVERSIFIED steel producer
Source: AISI, First River
Steel demand rises
when GDP grows >2.5%
Global Insight’s US Real GDP Percent Change Estimates
2009 – (2.5%)
2010 – 2.0%
2011 – 2.9%
Steel demand falls
when GDP grows <2.5%
Source: US BEA, AISI, First River
NA scraps 14 million per year
Imports average 2.5 million
NA must build 11.5 just to stay even
35%+ drop this year
Average 11.5 2009 to 2013
NOTE:***Ward’s North America Vehicle Production was: 8.2M Vehicles in 2009 and 9.99M Vehicles in 2010
Source: CSM Worldwide (May 2009)
Top forecast line is FW Dodge
Bottom line is Portland Cement Association
30%+ drop 2008 to 2010
Average 1,115 2009 to 2013
Source: First River, FW Dodge and PCA (Spring 2009)
35-40% drop this year
Average 90-95 MT 2009-2013
Source: CSM, FW Dodge, PCA, WSA, First River
Consumers transitioning from debt-driven economy to savings-driven economy.Consumers using less debt
End-use demand determined by what consumers can afford, NOT by what they can borrow.
Annual % Increase
in Consumer Credit
During 2001 recession,
credit still grew at rates
of 5-10% per year
2009 - New credit
Source: U.S. Federal Reserve, Consumer Credit Outstanding, Millions of Dollars, Seasonally Adjusted
US trade deficit at all time high
US debt at all time high
US budget deficit at all time high
Government is picking up the debt that consumers are shedding.
Consider American Manufacturing when enacting new public policy, such as:
Employee Free Choice Act
Cap-and-Trade and Climate Change
National Health Care
Government can drive costs and unemployment up by over regulation or make American manufacturing more competitive and create jobs.
Enforcement of the Rules of International Trade
End currency manipulation
Challenge illegal export subsidies
Fight foreign governments competing in commercial markets