Nucor Corp is set to close Nuconsteel by spring of 2012

NEW YORK (Scrap Monster): Nucor Corp. (NYSE: NUE) is set to close its Nuconsteel division in the coming months. The company's decision was based on the fact that the fabrication of residential and commercial light gauge steel framing was not giving profitable returns to the company. The number of employees to be affected by the shutdown has not yet been revealed. Nucor expects to close Nuconsteel's facilities in the spring of 2012, after meeting current customer contractual obligations.

Hamilton Lott, executive vice president of Fabricated Construction Products said, “The Nuconsteel team is a group of hard working and dedicated individuals. We very much appreciate the persistent and significant efforts of those teammates over the years and, where possible, we will encourage those employees to seek other opportunities within Nucor.”

Dan DiMicco, chairman and CEO of Nucor Corp. said “This decision was a very difficult one due to the impact it has on our employees at Nuconsteel. We continually evaluate our business segments for long-term strategic fit and earnings potential. The fabrication of residential and commercial light gauge steel framing does not offer the returns or scale necessary for Nucor to remain in the business.”

Nuconsteel has operations in Denton, Texas, and Dallas, Ga. In November 2001, Nucor entered into the residential and commercial light gauge steel framing business by acquiring Itec Steel Inc. which was named Nuconsteel afterwards.