from a work email
-- Driving up our costs for raw materials, energy, labor, railcar and truck transportation
-- Reducing our operating rate which will reduce the pay of our teammates, lowering our overall profit margin which will decrease state corporate income tax, employee payroll tax and sales tax
-- It could also shift orders, tons and jobs to our 3 sister divisions since the freight differentials are relatively low
There is no room in the current market for additional steel
capacity.
-- The sheet steel industry has only been running at 70-75% capacity for more than 4 years.
-- Of the top 27 steel makers in the world, 19 are rated as junk bond status by Moody and S&P. Nucor is the only North American producer with an Investment Grade rating.
-- According to the Organization of Economic Cooperation and Development, even if no more steel mills are built worldwide, it will take 5 to 7 years for demand to catch up with supply.
Big River Steel will be a direct competitor to Nucor Steel Arkansas
-- BRS will make 100 percent of the product line made by Nucor Steel Arkansas
-- Nucor Hickman has not operated at full capacity since Sept. 2008 because of lack of demand
-- The BRS project will be built in two phases. Phase 1 involves building a 1.5 million ton plant that is very similar to Nucor Steel Arkansas
-- In phase 1, Big River Steel will not make any unique products in electrical and automotive steels that have limited supply in the USA
-- All the products produced by the BRS phase 1 are readily available by multiple suppliers
-- If phase 2 is ever constructed, it is years down the road and another estimated billion dollars to construct
-- Concerning the electrical steels, there is currently a 21 percent oversupply in the market of Grain Oriented Electrical Steel (GOES) and Non-Grain Oriented Electrical Steel (NGOES). The selling price for these steels is half of what it was in 2008 and China is still building steel mills to produce GOES and NGOES. Additionally, there are 2 producers of this steel located in the USA.