Nucor 2013 Annual Report Download - page 17

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16
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 2013, Vulcraft produced 342,000 tons of steel joists
and joist girders, an increase of 18% over the 291,000 tons produced in 2012. Material costs, primarily steel, were approximately
59% and 63% of the joist sales dollar in 2013 and 2012, respectively. Vulcraft obtained more than 99% of its steel requirements
for joists and joist girders from the Nucor bar mills in both 2013 and 2012. Freight costs for joists and joist girders were less than
7% 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 2013,
steel deck sales increased 8% to 334,000 tons, compared with 308,000 tons in 2012. Material costs, primarily coiled sheet steel,
were approximately 76% and 75% of the steel deck sales dollar in 2013 and 2012, respectively. Nucor obtained approximately
86% and 83% of its steel requirements for steel deck production from the Nucor sheet mills in 2013 and 2012, respectively. In
2013 and 2012, freight costs were less than 6% 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 obtained 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 obtained 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.