Nucor Corporation announced Wednesday it has entered into an asset purchase agreement to acquire the Precoat Metals Corporation's paint line facility located in Armorel, Arkansas. 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.
Nucor Steel Arkansas opened in 1992 and is capable of producing approximately 2,650,000 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 3rd generation advanced, high-strength steel galvanizing line with an annual capacity of approximately 500,000 tons which will begin operating in 2021.
“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,” said Troy Brooks, Vice President and General Manager of Nucor Steel Arkansas. “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 pre-paint markets.”