Nucor Corporation in 2001 Essay -- Steel Producers Nucor Essays

Nucor Corporation in 2001 Nucor's History Nucor Corporation is the second-largest steel producer in the United States and has had net sales of $4.6 billion in 2000. Nucor recycles approximately 10 million tons of scrap steel. It operates in 9 states and produces carbon and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. The company emerged from near Bankruptcy in 1966 to become one of the fastest-growing steel. Despite the recession in 1991, Nucor grew into one of the biggest and best-known global producers of steel. Nucor's origins are with auto manufacturer Ransom E. Olds, who founded Oldsmobile and then Reo Motor Cars. Through a series of transactions, the company Olds founded eventually became the Nuclear Corporation of America. Nuclear Corporation was involved in the nuclear instrument and electronics business in the 1950's and early 1960's. The company suffered through several money-losing years, and when facing bankruptcy in 1964, installed F. Kenneth Iverson as President and Samuel Siegel as Vice President of Finance. This change in management led to a restructuring and a decision to rebuild the company around the major profitable operations; the steel joist businesses in Florence, South Carolina and Norfolk, Nebraska called Vulcraft. The company moved its headquarters from Phoenix, Arizona to Charlotte, North Carolina in 1966, and expanded the joist business with new operations in Texas and Alabama. Management then decided to integrate backwards into steel making by building its first steel bar mill in Darlington, South Carolina in 1968. In 1972 the company adopted the name Nucor Corporation. Since that time, Nucor has built three more Vulcraft facilities, eight steel mills, and expanded into other steel products. Current Strategy and Future Expectation Nucor is pursuing long-term growth and wants to improve its position from the second-largest U.S. steelmaker by overtaking U.S. steel, who is the industry leader. Its current strategy is to be the lowest cost provider of steel by finding opportunities to reduce cost. It emphasizes on technological leadership by aggressive pursuit of innovation and technical excellence. It puts strong emphasis on employee relations and provides fair compensation and ... .... It would reduce cost by removing the redundant duplicate efforts by the divisions. It would also bring the top executives on the same page and controlling the business would be much easier for them. Nucor should continue to be the low-cost, quality provider by using all its strengths. It should continue to be the technological leader by quickly identifying and adopting new technologies. With the competition getting so tough, Nucor should partner with companies coming up with the newest technology, instead of trying to do it on their own. This would reduce the R&D effort and cost and help Nucor get to the technology faster. Nucor should grow by acquiring other companies, but care must be taken to see that they fit strategically. It should also look outside the U.S. for consolidation opportunities. By going outside of the U.S. it may be able to reduce the energy, raw material and labor costs, which will give it an edge over its domestic competitors. Finally, it should use all its influence to increase the mounting pressure on the Bush administration, to impose 40 percent import tariffs and quotas that will provide some relief from the dumping by the foreign steel producers.