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Nucor Case Analysis : Assignment

   

Added on  2021-04-21

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Running head: NUCOR CORPORATION: GROWTH BY ACQUISITIONSNUCOR CORPORATION: GROWTH BY ACQUISITIONS Name of the StudentName of the UniversityAuthor note

1NUCOR CORPORATION: GROWTH BY ACQUISITIONSNucor Corporation is one of the biggest steel producers in the world. It was initially involved inthe nuclear and electronic instruments business in the 1960s. After incurring losses, they hadhired an engineer F.Kenneth Iverson. It was on his recommendation that the company hadswitched to the business of steel joist, through the help of the company’s South Carolina basedVulcraft Subsidiary. With his vision and innovative business approach, Nucor Corp. continued togrow and had become the most successful steel company in the history of the United States. Since 2000, the company had embarked on its strategy of acquisition for the expansion ofits customer base, geographical coverage and increasing the diversity of its product line. Theywanted to acquire growth driven companies. The Nucor management wanted to expand into newterritories by acquiring the existing plants of those areas (" Nucor Corporation | Our Story |History ", 2018). Their existing equipments, customer’s base were used in accordance withNucor’s advantage. If required, the company had opted to build state of the art facilities in thoseacquired firms in order to bring them to Nucor’s level. The economic recession of Asia had hitthe US in 2000-01 and the September 11; terrorist attacks had created a grim situation in theoverall steel market across the States and the world. Under the visionary leadership of DanDiMicco, (New CEO who took over in 2000) the management chose to use this grim scenario togo ahead with their acquisition plans (Hwang, 2013). This was done primarily because of theoversupplied steel industry and the excess number of economically plagued steel companies inthe US. Some of the path breaking acquisitions of Nucor is as follows:Nucor in 2001 had acquired Auburn Steel Company which had provided a vast market presencein the north east and a good source of supply for the new joist plant at Chemung. In June 2004,

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