FRANKFURT, KY (WTVQ) — Nucor Tubular Products, a subsidiary of steel maker Nucor Corp., plans to build a $164 million pipe plant in Gallatin County and create 72 full-time jobs.
Once commissioned, the 396,000 square foot steel pipe plant will provide an annual production capacity of 250,000 tons of steel pipes, including hollow structural steel pipes, mechanical steel pipes, and galvanized solar torsion pipes.
Located near Ghent, Kentucky, the new pipe plant will be close to the expanding U.S. solar energy market and the largest consumer of shaped hollow structure pipes. The company’s management expects construction to begin this summer, with completion scheduled for mid-2023.
With this investment, Nucor will expand its already important business in Gallatin County. The company recently completed the first phase of a massive $826 million expansion project at its Nucor Steel Gallatin plant near Ghent, Kentucky.
The plant producing flat rolls is now in the middle of the second stage. The Gallatin steel plant expansion created 145 full-time jobs.
The company is also growing elsewhere in Kentucky. In October 2020, Governor Andy Beshear and Nucor officials celebrated the opening of a $1.7 billion 400-person steel plate plant in Mead County. The 1.5 million square foot site is expected to open in 2022.
Nucor, headquartered in Charlotte, North Carolina, is the largest refiner in North America and the nation’s largest producer of steel and steel products. The company employs more than 26,000 people at more than 300 locations, primarily in North America.
In Kentucky, Nucor and its subsidiaries employ about 2,000 people at numerous locations, including Nucor Steel Gallatin, Nucor Tubular Products Louisville, Harris Rebar, and a 50% stake in Steel Technologies.
Nucor also owns David J. Joseph Co. and its many recycling facilities throughout the state, operating as Rivers Metals Recycling, collecting and recycling scrap metal.
The Nucor Tube Products (NTP) group was created in 2016 when Nucor entered the tube market through the acquisition of Southland Tube, Independence Tube Corp. and Republic Conduit. Today, NTP consists of eight tube mills strategically located next to Nucor’s plate mill as they are customers of hot rolled coil.
NTP Group manufactures high speed steel pipes, mechanical pipes, piles, water spray pipes, galvanized pipes, heat treated pipes and electrical conduits. The total annual production capacity of the NTP is about 1.365 million tons.
Nucor’s operations are part of Kentucky’s powerful iron and steel industry, which includes over 220 operations and approximately 26,000 employees. The industry includes producers and processors of steel, stainless steel, iron, aluminium, copper and brass.
To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) on Thursday initially approved a 10-year incentive agreement with companies under the Kentucky Business Investment Program. The results-based agreement can provide tax incentives of up to $2.25 million depending on the company’s investment of $164 million and the following annual targets:
In addition, KEDFA has authorized Nucor to provide tax credits of up to $800,000 under the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recover Kentucky sales and use taxes on construction costs, construction fixtures, equipment used for research and development, and electronic processing.
Having reached its annual goal during the term of the agreement, the company has the right to withhold a portion of the new taxes it generates. Companies can apply for qualifying exemptions for their income tax obligations and/or payroll assessments.
In addition, Nucor has access to Kentucky Skills Network resources. Through the Kentucky Skills Network, companies receive free recruitment and placement services, reduced-price personal training, and vocational training incentives.
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