Nucor 2015 Annual Report Download - page 11

Download and view the complete annual report

Please find page 11 of the 2015 Nucor annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 98

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98

STRENGTHEN OUR POSITION AS A LOW COST PRODUCER
Driving Operational Efficiency
Nucor excels at continuous improvement. We are constantly finding ways to make steel more efficiently and at less
cost. In the second half of 2016, Nucor-Yamato Steel will install a $75 million cooling process that will lead to
significant alloy reductions. For one product grade in particular, this process will save Nucor-Yamato Steel an estimated
$12 million in alloy costs annually.
MOVE UP THE VALUE CHAIN
Offering Higher-Quality, Higher-Strength Products
Nucor has invested billions of dollars in projects to expand our capabilities and produce more value-added, higher-
margin products. These steel products not only service more needs for our value-driven customers, but also are more
resistant to underpriced imports. For example, Nucor’s $365 million investments in engineered bar have allowed
us to increase shipments to the automotive market by 20% to 1.4 million tons per year. We have also committed
teammates specifically to the relationships with our automotive customers to better serve their needs.
EXPAND DOWNSTREAM CHANNELS TO MARKET
Increasing the Base Volume of Our Mills through Vertical Integration
Nucor’s downstream steel products subsidiaries and affiliates complement our steelmaking capabilities. The reliable
base of production from internal customers such as Harris Steel, Skyline Steel and Steel Technologies not only
enhances the profitability and flexibility of our steel mills, but also allows our downstream products to build market
leadership positions by having a dependable source of steel. In the last ten years, we have nearly doubled our volume
to internal customers.
ACHIEVE COMMERCIAL EXCELLENCE
Taking Care of Our Customers
Nucor worked with Gallup to survey 1,000 customers with the goal of understanding how we can better take care
of our customers’ needs. It doesn’t just end with conducting a survey. We are proactively working with our
customers to move beyond merely filling an order to creating a purchasing experience that provides exceptional
value. Every teammate at Nucor knows how important this effort is, and that we will be conducting a follow-up
survey to measure our progress.
ACHIEVE MARKET LEADERSHIP
Leading in Every Product Line in Our Portfolio
Nucor is the most diversified steel and steel products company in North America. We utilize our unmatched geographic
reach to provide more products to more customers than any of our competitors. That’s why we are the market leader in
nine of the eleven major product markets in which we compete. We look to improve our market leadership position in
various ways, both big and small. Our recent acquisition of Gallatin Steel Company in 2014 is an example of how we
solidified our market leadership position in hot-rolled sheet steel.