Nucor Corp. plans to invest $280 million to expand its Tuscaloosa plant, the Tuscaloosa County Economic Development Authority announced Thursday.
Nucor, one of the nation’s largest producers of steel and steel products, will use $280 million to expand its current offerings and add a new product line to its steel coils and plates in Tuscaloosa County, officials said.
The investment in the company’s Holt Road plant will allow Nucor’s Tuscaloosa County mill to produce thinner, stronger, higher-quality slabs and a new product line that is not produced domestically.
Construction is expected to begin by the end of the year, with the project expected to be fully operational by the summer of 2027.
“The investment in the Tuscaloosa rolling mill is important to keep our plant competitive in the global steel industry and to open up new market opportunities for our team,” Brian Filippi, vice president and general manager of Nucor Steel Tuscaloosa, said in a statement. “We appreciate the support we received from the Tuscaloosa County Economic Development Authority for this project.
“For nearly 20 years, Nucor Steel Tuscaloosa has distinguished itself by producing quality products, creating high-paying jobs and prioritizing philanthropic activities in our community,” said TCEDA Chairman Norman Crowe. “This project demonstrates Nucor’s long-term commitment to Tuscaloosa County and its citizens, which we will reap the benefits of for years to come.”
Tuscaloosa County Probate Judge Rob Patterson added, “The County Commission is pleased to see Nucor expand its operations in Tuscaloosa County, retaining a significant number of high-paying jobs.”
“Improving our domestic steelmaking capabilities is critical to sustaining our national economic productivity. Nucor’s latest investment not only strengthens their capabilities locally, but showcases Tuscaloosa County globally,” Patterson continued.
The Tuscaloosa County Industrial Development Authority, which operates as the Tuscaloosa County Economic Development Authority, approved a package of tax incentives as part of a Nucor investment.
The tax savings support the retention of more than 400 high-paying jobs at the Tuscaloosa County facility and new revenue for local suppliers and state and local tax bases, the economic development authority said.
The authority’s board of directors approved the package Thursday afternoon during its November meeting.
Nucor will receive a non-educational sales and use tax abatement on purchases of equipment and construction materials during the construction phase of the project and a non-educational ad valorem tax abatement on certain real and personal property for up to 10 years.
“Nucor has a long history of corporate citizenship, particularly in the area of education,” said Tuscaloosa Mayor Walt Maddox. “Through numerous programs and activities, Nucor actively supports educational opportunities for area students. This project creates new business opportunities for Nucor and new revenue for our education systems, which strengthens our community and its future.”
Authority officials said the company would be eligible for a tax break of about $16.8 million.
Projections show Nucor will contribute about $11 million in taxes from project activity alone, including more than $7.5 million in new education taxes determined through the authority’s standard assessment process.
“It’s great news that Nucor is making a significant reinvestment in its Tuscaloosa facility because this commitment strengthens the future of the site and the high-paying jobs of more than 400 workers,” said Alabama Commerce Secretary Greg Canfield. “This is an important win for the community and for the entire state.”