Tough as steel

We’ve written plenty about the booming steel industry in Northeast Arkansas — an industry that is about to become a more dominant part of the state’s economy.

Nucor Steel, which has been in Mississippi County since Bill Clinton was governor, continues to maximize its production goals. I recently toured the campuses of Nucor and was thoroughly impressed with how much it has adapted to technology and market needs as it has grown through the decades.

That’s good news, but even better news, is that Nucor is poised for much more productivity and growth in the coming years. Officials shared with me that they are running on all cylinders with their lines, and the pipeline for new projects is full, prosperous, and shows no signs of slowing down.

Despite the requirement to simply keep up with existing demand, Nucor is forward thinking enough to also be planning for the future. It remains to be seen when and where we may see a future expansion of Nucor, but let’s hope it is in Arkansas.

One of the things that impressed me the most about my Nucor visit was that it has embarked on an initiative to take byproduct from used tires and recycle them into raw product for its steel. This conversion solution required a combination of engineering, chemistry and common sense. Officials told me it was a tedious task of experimentation to finally find a way to reuse these landfill products in a way that benefits its steel beams.

Tire waste has been a decades-long problem for local officials who have done many things to isolate them in landfills and search for solutions to recycle the rubber and steel products found in tires. Nucor’s potential breakthrough could have global consequences for this tire waste problem. 

Currently, Nucor says it’s using about 50% of the state’s tire waste inventory, and they are ready to increase that to 100% in the near future. Imagine, having a new use for every tire that is at the end of its life cycle and recycling it into something as strong and critical as steel. This is truly consequential, and I think you’ll hear more about it in both business and public policy circles.

While Nucor has quietly toiled its way into top-tier production, U.S. Steel has been garnering headlines with its recent acquisition by Japan-based Nippon and its commitment to growth in Northeast Arkansas.

U.S. Steel, which bought Big River Steel a few years ago, is about to invest another $3 billion in Arkansas, according to recent comments from its CEO David Burritt, who spoke to the Arkansas State Chamber of Commerce in November.

The $3 billion investment will allow the company to build a direct reduced iron plant that will use iron pellets to produce feedstock for its electric arc furnaces in Osceola. In addition, the company will manufacture grain-oriented steel used for transformers, electric motors, and critical energy and industrial projects.

Burritt said the company has the permits for the projects but has not yet broken ground. He said it has a “legally binding national security agreement” to spend or commit to it by the end of 2028.

In mid-November Hybar held its grand opening for its sustainable rebar mill in Osceola. Since the startup company was formed a little more than two years ago, it has completed a scrap metal recycling steel production mill, a behind-the-meter solar and battery storage electrical energy facility, and a Mississippi River port operation for a total investment of nearly $1 billion.

Hybar’s scrap metal recycling steel production mill will now produce more than 700,000 tons annually of reinforcing bar, commonly known as rebar, accounting for approximately 7% of the annual rebar demand in the U.S.

Dave Stickler, who helped start Big River Steel, is behind the Hybar projects.

All of this is good for the Arkansas economy and the national economy. As more infrastructure and building growth is needed — and it is — it portends well for Northeast Arkansas and this increasingly critical component of the state’s business portfolio. 

Not only are these jobs high-paying, they are resilient and likely to do well as long as population is growing in cities and communities across the globe. We are fortunate to have companies like Nucor, U.S. Steel and Hybar in our state. Just as importantly, we are lucky to have a business climate, workforce, and education system geared towards keeping them growing.

Editor’s note: Roby Brock is the Editor-in-Chief of Talk Business & Politics. He hosts “Talk Business & Politics” and “Capitol View” and a radio program three times a week on KASU.