Nucor 2015 Annual Report Download - page 18

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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 2015, Vulcraft sold 427,000 tons of steel joists and
joist girders, an increase of 1% from 421,000 tons in 2014. Material costs, primarily steel, were approximately 49% and 60% of the
joist sales dollar in 2015 and 2014, respectively.
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 2015,
steel deck sales increased 1% to 401,000 tons, compared with 396,000 tons in 2014. Material costs, primarily coiled sheet steel,
were approximately 64% and 75% of the steel deck sales dollar in 2015 and 2014, respectively.
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. Domestic
construction markets have stabilized during the past few years but remain well below historical peak levels.