FRANKFURT, Ky. (WTVQ) — Nucor Tubular Products, a subsidiary of steel products maker Nucor Corp., plans to build a $164 million pipe plant in Gallatin County and create 72 full-time jobs.
Once operational, the 396,000-square-foot steel pipe plant will provide an annual production capacity of 250,000 tons of steel pipes, including hollow structural section pipes, mechanical steel pipes and galvanized solar torque pipes.
Located near Ghent, Kentucky, the new tube plant will be near the expanding solar market in the United States and the largest consumer of hollow-structure profiled tubes.Company leaders expect construction to begin this summer, with completion currently set for mid-2023.
With this investment, Nucor will increase 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, which produces flat coils, is now in the middle of its second phase.A total of 145 full-time jobs have been created by the expansion of the Gallatin steel plant.
The company is also growing elsewhere in Kentucky.In October 2020, Gov. Andy Beshear and Nucor officials celebrated the groundbreaking of the company’s 400-job, $1.7 billion steel plate manufacturing plant in Mead County The 1.5 million square foot site is expected to open in 2022.
Headquartered in Charlotte, North Carolina, Nucor is North America’s largest recycler and the nation’s largest producer of steel and steel products.The company employs more than 26,000 people at more than 300 facilities, primarily 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 50% ownership in Steel Technologies.
Nucor also owns the David J. Joseph Co. and its multiple recycling facilities across the state, operating as Rivers Metals Recycling, collecting and recycling scrap metal.
Nucor’s Tube Products (NTP) group was established in 2016 when Nucor entered the tube market with the acquisitions of Southland Tube, Independence Tube Corp. and Republic Conduit.Today, NTP consists of eight pipe facilities strategically located near the Nucor sheet mill as they are consumers of hot rolled coil.
NTP Group manufactures high speed steel pipe, mechanical pipe, piling, water spray pipe, galvanized pipe, heat treated pipe and electrical conduit.NTP’s total annual production capacity is approximately 1.365 million tons.
Nucor’s facilities are part of Kentucky’s strong primary metals industry, which includes more than 220 facilities and employs approximately 26,000 people.The industry includes producers and downstream processors of steel, stainless steel, iron, aluminum, 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 performance-based agreement can provide tax benefits of up to $2.25 million based on the company’s $164 million investment and the following annual goals:
In addition, KEDFA approved Nucor to provide tax benefits of up to $800,000 through the Kentucky Enterprise Initiative Act (KEIA).KEIA allows approved companies to recover Kentucky sales and use taxes on construction costs, building fixtures, equipment used for R&D and electronic processing.
By meeting its annual target over the term of the agreement, the company is eligible to retain a portion of the new taxes it generates.Companies can apply for qualifying incentives for their income tax liability and/or salary assessment.
Additionally, Nucor has access to resources from the Kentucky Skills Network.Through the Kentucky Skills Network, companies receive free recruiting and job placement services, customized training at reduced costs, and job training incentives.
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