Nucor Acquires Paint Line from Precoat
By Metal Center News Staff
on Oct 28, 2020
Nucor Corp. will purchase a paint line facility in Armorel, Ark., from Precoat Metals. The paint line facility, located near the Nucor Steel Arkansas sheet mill campus, has a capacity of approximately 250,000 tons per year. Nucor considered building a greenfield paint line before deciding to acquire the Precoat Metals facility.
"Becoming a direct supplier of prepainted sheet products is part of the execution of our long-term strategy of adding value for our customers by streamlining their procurement process. Purchasing this paint line has several advantages over building a new facility, including greatly accelerating Nucor's entrance into the painted products market with existing capacity and an experienced team. We will be able to diversify our product and market mix sooner, bringing value-added products to customers in construction, HVAC, garage door, lighting, transportation and other key prepaint markets," said Troy Brooks, vice president and general manager of Nucor Steel Arkansas. "
Nucor Steel Arkansas is capable of producing approximately 2.65 million tons of hot-rolled sheet steel annually for automotive, appliance, construction, pipe and tube and many other applications. Nucor Steel Arkansas recently completed construction of a new specialty cold mill complex and is currently building a new third-generation advanced, high-strength steel galvanizing line with an annual capacity of approximately 500,000 tons, which will begin operating in 2021.