Nucor Analysis

1 Devdatta Bhattacharya, Section B Nucor at a crossroads Arena: ? ? ? ? Nucor has been real successful with its existing stain minimills, achieving consistent profits and maintaining worker productivity The vane manufacturing is suffering from significant everyplace potentiality; darn number US might simply stands at somewhat 133 cardinal net oodles of production per year, the mart consumed tho 70 million net tons of leaf blade in 1986, leaving over 60 million tons of idled capacity The low-end structural products mart is saturated with numerous small(a) minimills competing against each other in a stagnant or shrinking marketplace Nucors still option for continued gain is to invest in subverter technology, an unproven shrink-slab cast workings that would allow it to enter the market for flat main rag steel with a low minimal efficient scale and fringy cost of production damage pick out: ? Exhibits 12A and 12B of the case present in markation on costs and favorableness for the production of hot and mothy rolled rag as produced by the proposed abridge-slab minimill and by the coordinated mills, the only current producers of flat-rolls.

evade 1: Construction be for Flat-Rolled Product Plants Type of sheet Hot-rolled Cold-rolled Thin-slab Minimill $236 $450 regenerate Integrated: $451 $675 % nest egg with Minimill: 48% 33% remit 2: Comparative run Data for Flat-Rolled Product Plants Thin-slab Minimill damage per ton Revenue per ton Profit contribution per ton HR $225.00 $306.50 $81.50 CR $283.00 $390.50 $107.50 Modernized Integrated HR $261.50 $326.00 $64.50 CR $349 00 $454.50 $105.50 lJnmodernized Integrated HR $300.00 $325.00 $25.00 CR $403.00 $453.00 $50.00 ? ? So, the costs of introducing new capacity in the machinate of thin-slab minimills is significantly lower than in form of an integrated mill with savings of 48% or 33%, depending on the type of sheet (hot-rolled or cold-rolled) Advantage of thin slab mills: The cost per ton of producing hot-rolled sheet in a thin-slab minimill is $225, a...If you want to get a full essay, order it on our website: Ordercustompaper.com

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