Nucor 2011 Annual Report Download - page 15

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14
VULCRAFT/VERCO GROUP is the nation’s largest producer and leading
innovator of open-web steel joists, joist girders and steel deck, which are
used primarily for nonresidential building construction.
OPERATIONS
Steel joists and joist girders are produced and marketed nationally through seven Vulcraft facilities located across the United States.
The current annual joist production capacity is approximately 715,000 tons. In 2011, Vulcraft produced 288,000 tons of steel joists
and joist girders, an increase of 4% from the 276,000 tons produced in 2010. Material costs, primarily steel, were approximately
66% of the joist sales dollar in both 2011 and 2010. Vulcraft obtained more than 99% of its steel requirements for joists and joist
girders from the Nucor bar mills in both 2011 and 2010. Freight costs for joists and joist girders were less than 9% of the sales
dollar in both years.
Steel decking is produced and marketed nationally through nine deck plants located throughout the United States. Six of these plants
are adjacent to Vulcraft joist facilities. The current annual deck production capacity is approximately 530,000 tons. In 2011, steel
deck sales increased 2% to 312,000 tons, compared to 306,000 tons in 2010. Material costs, primarily coiled sheet steel, were
approximately 78% of the steel deck sales dollar in both 2011 and 2010. Nucor obtained approximately 83% and 81% of its steel
requirements for steel deck production from the Nucor sheet mills in 2011 and 2010, respectively. In 2011 and 2010, freight costs
were less than 7% of the sales dollar.
Vulcraft maintains an extensive fleet of trucks to ensure the on-time delivery of its joist and deck products.
MARKETS AND MARKETING
The majority of steel joists, joist girders and steel decking are used extensively as part of the roof and floor structural support systems
in manufacturing buildings, retail stores, shopping centers, warehouses, schools, churches, hospitals and, to a lesser extent, in multi-
story buildings and apartments.
Steel joists and joist girder sales are made through a competitive bidding process. Vulcraft quotes on a significant percentage of the
domestic buildings using steel joists and joist girders as part of the support systems. Vulcraft is the largest supplier of steel joists and
joist girders in the United States.
Steel deck sales are also made through a competitive bidding process. The majority of steel deck is used to support roofs and is also used
as concrete floor support in high-rise buildings. Vulcraft and Verco are also the largest suppliers of steel decking in the United States.
Sales of steel joists, joist girders and steel deck are dependent on the nonresidential building construction market.