BUS490 Comprehensive Examination
Nucor Steel Corporation
Written by: Lukas Kubilius
Professors: Bonnie J. Straight
Julian J. Prewitt
Lithuania Christian College
2 March 2005
Overview of situation
Nucor Corporation with 24 plants/divisions and 8,000 employees, operated in nine states recycling more than 10 million tons of scrap steel annually. Producing carboy and alloy steel in bars, beams, sheet, and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; and metal building systems, the corporation was known as the most modern and efficient, having streamlined organizational structure, incentive-based compensation and rigorous quality systems in the United States.
Nucor Corporation entered the 21st century as one of the leading U.S steel producers. At the same time, steel industry was experiencing crisis and steel production capacity was exceeding the market demand. Drop-offs in revenues and price cuttings forced many steel producers declare a bankruptcy.
Economic recession of late 1990s in Europe and Asia, September 11, 2001 terrorist attacks had big impact on U.S steel industry. The main steel-consuming industries as construction, automobiles, and farm equipment were experiencing slow down. Foreign steel producers found reliable and effective way to fight with global steel excess. Subsidized by the governments they were dumping U.S market at the throat-cutting rates.
Import Value per Net Ton
Product May 1999 1st Quarter 19998 % Change
Wire rods $ 275 $ 350 -21,50%
Structural shapes 267 379 -29,6
Places cut lengths 456 490 -6,9
Plates in colis 257 377 -31,7
Reinforcing bars 198 300 -33,9
Line pipe 429 524 -18,2
Black plate 551 627 -12,2
Sheet hot rolled 242 304 -20,4... [continues]
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