Nucor Corporation: Encyclopedia II - Nucor Corporation - History

Nucor Corporation - History

Nucor's history consists of three distinct areas: the Reo Motor Car era, the Nuclear Corporation of America era, and the current Nucor era.

Nucor Corporation - The REO era

Nucor's origins are with auto manufacturer Ransom E. Olds, who founded Oldsmobile (later part of General Motors) and then Reo Motor Cars, the predecessor to Nucor, in Lansing, Michigan. Though Olds' cars were popular, they were not profitable, and the company's truck business (featuring the famous Reo Speed-Wagon) was not sufficiently profitable to avoid a trip to bankruptcy court in 1938.

Reo exited the car business, concentrated on trucks (with little success), attempted to diversify into lawn mowers (which didn't help), and finally in December 1954 sold off its entire manufacturing operations (suffering a $3 million loss on the sale).

Nucor Corporation - The Nuclear Corporation Era

After the sale, Reo ended up with $16 million in cash and no businesses. So it attempted to liquidate itself out of business.

However, a group of dissident shareholders noticed the tax loss and successfully challenged the liquidation in a proxy fight in September 1955. In what amounted to a "reverse hostile takeover", Reo was forced to take over a tiny corporation called Nuclear Consultants, Inc.

Eventually Reo emerged as "Nuclear Corporation of America", and relocated to the Empire State Building in New York City. However, Nuclear's attempts to emerge as a nuclear based company were no more successful than Olds was in making money on his cars and trucks. Thus, it then attempted to become a conglomerate, and once again moved its headquarters, this time to Phoenix, Arizona.

Among the many businesses purchased during Nuclear's attempts at becoming profitable was Vulcraft, a steel joist manufacturer located in Florence, South Carolina. Vulcraft was founded by Sanborn Chase (no relation to the coffee company), who died at an early age, leaving the company to his widow. Nuclear purchased Vulcraft from Chase's widow in 1962 and hired F. Kenneth Iverson as general manager.

However, Nuclear the conglomerate was no better than Nuclear the nuclear company or REO the truck manufacturer, and in March 1965 filed for bankruptcy. The Board of Directors fired Nuclear's President (and, in the process, had to return his private jet to him), but for two months could not find a replacement, as nobody wanted to head a corporation that was most likely going to go out of business. Finally, Samuel Siegel, an accountant with Nuclear who had actively been looking to leave the company, informed the Board of Directors he would remain with the company under two conditions: Iverson would become President and he (Siegel) would become Chief Financial Officer, conditions the Board quickly accepted.

Nucor Corporation - The Nucor Era

Iverson and Siegel quickly reorganized Nuclear around its only profitable business, Vulcraft. All other Nuclear businesses were either sold or liquidated. The company moved its headquarters yet again, this time to Charlotte, North Carolina in 1966, to be closer to its main Vulcraft plant.

Unable to get favorable prices from American steel manufacturers, and unhappy with the imported steel available at the time, Iverson (a metallurgist by training) decided to integrate Nuclear backwards into steel making by building its first steel bar mill in Darlington, South Carolina in 1968. The company chose to purchase an electric arc furnace, which was far cheaper than the traditional steel blast furnace, courtesy of a US$5,000,000 bank loan from Wachovia. Although the early days were tough (once the American steel manufacturers learned Nuclear was operating its own mill, they cancelled their contracts), Nuclear was finally able to obtain the financial success that had eluded the company from its beginning.

In 1972 the company (recognizing that there was nothing "nuclear" about making steel or steel products) adopted its current name. Since that time, Nucor has built three more Vulcraft facilities, eight steel mills, and expanded into other steel products, and has maintained its headquarters in the SouthPark area of Charlotte (though it did relocate within the area).

In September of 2000, Dan DiMicco was appointed as the Chief Executive Officer by Nucor's Board of Directors. Under his leadership, Nucor curtailed its long standing practice of constructing "greenfield" production facilities, citing an overcapacity in the domestic market as the primary reason. Instead, attention was given to acquiring compatible existing steel manufacturing facilities with similar operating philosophies. Nucor has made approximately 6-7 purchases of companies, part interests, and facilities since DiMucco became CEO.

As of December 2005, Nucor operates facilities in 14 states and employs over 11,000 workers.

Steel products produced include:

• Bars (carbon and alloy steel)
• Beams
• Sheet/Flat Rolled
• Plate
• Steel joists
• Joist girders
• Steel deck
• Cold finished steel
• Steel fasteners
• Metal building systems
• Light gauge steel framing

Adapted from the Wikipedia article "History", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki