CHARLOTTE, N.C., March 8, 2018 /PRNewswire/ — Nucor Corporation (NYSE: NUE) is pleased that President Trump moved forward today to implement the tariffs on steel imports he announced last week. For years, foreign producers have found every way possible to circumvent our country’s trade laws and it is time for the U.S. government to aggressively use all the tools at its disposal to ensure our economic security and national defense. Taking this comprehensive action makes it clear to foreign competitors that dumping steel products into our market will no longer be tolerated.
“We thank the President for taking decisive and meaningful action to address the massive flood of dumped and illegally subsidized steel imports into the United States,” said John Ferriola, Chairman, CEO and President of Nucor Corporation. “For too many years, Nucor and other American steelmakers have dealt with this chronic problem, which is fueled by foreign governments’ subsidies and preferential treatment for their steel industries in violation of international trade agreements and free market principles.”
The global steel industry has more than 800 million tons of excess production capacity, approximately half of which is from China. Foreign government interference in global steel markets has disrupted trade flows and created the overcapacity problem. As a result, the U.S. steel industry has endured a prolonged downturn. While the domestic steel market was stronger in 2017, this financial performance is not sustainable if unfairly traded imports are allowed to continue entering the U.S. market. After tax profits for U.S. steelmakers still lag behind many other manufacturing sectors. Since 2010, the U.S. steel industry has averaged an after tax return on sales of well below 5%, while total U.S. manufacturing has averaged close to a 10% return on sales.
“The Commerce Department was correct in concluding that illegally traded imports impair our national security by limiting the ability of our domestic steel industry to supply national defense and critical infrastructure needs, and the Trump Administration is taking the appropriate response to this threat,” said Ferriola. “Competing on a level playing field will enable us to keep doing what we have been doing for five decades – invest in our teammates, our facilities and new technology.”
Nucor and its affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel — in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America’s largest recycler.
SOURCE Nucor Corporation
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