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Steel manufacturer to invest $280 million in Tuscaloosa facility

Nucor Corporation, the single-largest steel producer in the United States, recently announced a $280 million investment into its steel mill in Tuscaloosa after being awarded a tax abatement package by local officials.

Known as Nucor Steel Tuscaloosa, the steel mill currently employs more than 400 people. The new investment will allow the facility to produce a new type of steel not manufactured anywhere in the United States.

Alabama Department of Commerce Secretary Greg Canfield, who recently announced his intentions to step down from the position by the end of the year, called the investment an “important win for the community,” as well as “for the entire state.”

“It’s great news that Nucor is making a significant re‐investment in its facility in Tuscaloosa because this commitment solidifies the site’s future and the high‐paying jobs of over 400 workers,” he said.

The investment was negotiated in part by local economic development officials who approved a tax abatement package for Nucor on Nov. 16. That package will allow the company to save millions in sales and property taxes.

Under the agreement, Nucor will receive an abatement on paying non-educational sales and use taxes for equipment and building material purchases made during the construction phase of the project. Nucor will also receive an abatement on paying non-educational property taxes on certain properties for up to ten years.

While the agreement will see local and state governments lose out on significant tax revenue potentially over the next decade,  Tuscaloosa County Economic Development Authority Chair Norman Crow said it was well worth it, given the decades’ worth of community investment seen from Nucor.

“For almost 20 years, Nucor Steel Tuscaloosa has excelled at producing quality products, creating high‐paying jobs, and prioritizing philanthropic activities throughout our community,” Crow said. “This project demonstrates Nucor’s long‐term commitment to Tuscaloosa County and its citizens, for which we will reap the benefits for years to come.”

As the tax abatements exclude taxes earmarked for the state’s education budget, as well as Nucor’s previous investment into educational programs for local residents, Tuscaloosa Mayor Walt Maddox said the new investment would bode well for education in his community.

“Nucor has a long history of corporate citizenship, especially in the area of education,” Maddox said. 

“Through numerous programs and activities, Nucor actively supports educational opportunities for area students. This project creates new business opportunities for Nucor and new revenue for our education systems, which strengthens our community and its future.”

Construction on the project should begin by the end of the year and be complete by summer 2027. The Tuscaloosa facility, along with two other Nucor steel facilities in North Carolina and Kentucky, have an annual production capacity of approximately 3 million tons of steel, which see use in military equipment and infrastructure projects.

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