CHARLOTTE, N.C. (AP) -- Steel producer Nucor Corp. said Tuesday it plans to start steel bar production at a previously idle mill in Kingman, Ariz.
The company expects operations to start by the second quarter of 2009. Capital improvements needed to restart production at the facility are expected to cost about $30 million.
Nucor acquired the idled mill from North Star Steel in 2003 for about $35 million. It took a $13 million charge for idling the mill's melt shop, where scrap metal is recycled, and kept its rolling mill operations available for restart.
Nucor will start rolling rebar and wire rod products due to growing demand in the southwestern U.S. market.
Initially, the Kingman mill is expected to produce about 250,000 tons of straight-length rebar, coiled rebar and wire rod annually. It will be capable of increasing annual production to more than 500,000 tons.
