Company Overview
As of the year 2011, Nucor is the largest steel manufacturer company in North America
with a production capacity of 27 million tons. Founded in the 1960s, Nucor started as a
nuclear equipment company. The operation in the first several years wasn’t as good as
expected leaded the company to move into the steel industry and changed the name to
Nucor in 1972.
The company successfully adapted the new technologies in making steel products from
recycled scrap steel. Nucor has been known as one of the most well managed company in
low-cost production and highly competitive in the industry. Unlike any of its competitors
which turn into the red-signal during the recession period, Nucor dealt with it as the
chances through a series of acquisitions and maintained a strong growth during a long
period of time, turned to be the market leader.
Company Strategies
The company key strategies based on the “five-part growth strategy” which deployed
acquisitions, plant constructions. Upgrades and cost reduction efforts, joint ventures and
back-ward integrating to gain control over raw-material cost.
New acquisition:
Nucor established the acquisition team in the late 1990s to utilize the available capacity at
bargain prices. The fact that global steel manufacturer’s capacity was far over the demand.
Moreover, during the recession, while over a half of the US steel industry’s manufacturer
was in the state of closing, Nucor was the only one in American steel industry has
sufficient financial strength to overcome the downturn. Those advantages allowed Nucor
to sufficiently initiate their acquiring strategy. As the results, the total sale to outside
