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Nucor Steel Plans to Build $280M Expansion of Its Existing Plant in Tuscaloosa

Tue November 28, 2023 - Southeast Edition #1
Made in Alabama


Nucor Steel Tuscaloosa plans to invest $280 million to support current and future operations at the Tuscaloosa County, Ala., rolling mill, the county's Economic Development Authority (TCEDA) announced Nov. 16.

The investment will expand current product lines and add a new product line to Nucor's steel coil and plate offerings at the facility, where it employs more than 400 workers.

Construction at Nucor's steel mill on Holt Road is slated to begin by the end of the year, reported Made in Alabama, the news site for the state's Department of Commerce.

The Nucor project will enable the plant to produce thinner, stronger, higher-quality steel plate as well as a new product line that is not currently manufactured domestically.

"The investment at the rolling mill at Tuscaloosa is important to keep our mill competitive in the global steel industry and open up new market opportunities for our team," said Brian Phillippi, vice president and general manager of Nucor Steel Tuscaloosa. "We appreciate the support we have received from the Tuscaloosa County Economic Development Authority for this project."

"It's great news that Nucor is making a significant reinvestment in its facility in Tuscaloosa because this commitment solidifies the site's future and the high‐paying jobs of over 400 workers," commented Greg Canfield, secretary of the Alabama Department of Commerce. "This is an important win for the community and for the entire state."

The project is expected to be fully operational by the summer of 2027.

Justice Smyth, executive director of the TCEDA, also praised Nucor's move to expand production at the mill.

"Nucor has investments in over 300 operating facilities in North America, and we are proud that the Tuscaloosa facility has been awarded this new business," he said, adding, "In today's global market, companies have a wealth of opportunities regarding where and how to invest in operations. [Their announcement] underscores Nucor's confidence in our partnership and our people."

Nucor a Source of Strength for Tuscaloosa County

TCEDA approved a tax abatement package as part of Nucor's investment in the mill's expansion, according to Made in Alabama. The statewide news outlet also noted that the tax savings support the retention of more than 400 high-paying jobs at the Tuscaloosa County facility, the generation of new revenue for local vendors, and the corresponding state and local tax bases.

Nucor will receive an abatement of the non-educational sales and use taxes for purchases of equipment and building materials during the construction phase of the project, and an abatement of certain non‐educational property taxes for up to 10 years.

TCEDA said the estimated taxes paid by Nucor from the project represent almost $11 million, including $7.5 million in education taxes.

"Nucor has a long history of corporate citizenship, especially in the area of education," explained Tuscaloosa Mayor Walt Maddox. "Through numerous programs and activities, Nucor actively supports educational opportunities for area students.

Maddox added that the construction project creates both new business opportunities for Nucor and new revenue for his community's education systems, which he said is a source of strength for Tuscaloosa County and its future.

"For almost 20 years, Nucor Steel Tuscaloosa has excelled at producing quality products, creating high‐paying jobs and prioritizing philanthropic activities throughout our community," explained Norman Crow, chair of the TCEDA. "This project demonstrates Nucor's long-term commitment to Tuscaloosa County and its citizens, for which we will reap the benefits for years to come."

In addition, Rob Robertson, a Tuscaloosa County probate judge, said, "The County Commission is pleased to see Nucor expand their operations [here], retaining a significant number of high‐paying jobs. Enhancing our domestic steel production capabilities is critical to sustain our national economic productivity. Nucor's latest investment not only bolsters their capabilities locally but showcases Tuscaloosa County globally."




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