(Reuters) - Nucor Corp (NYSE:NUE) said on Wednesday its board had approved $860 million in funding for the construction of a rebar micro mill in the Pacific Northwest, the exact location of which was yet to be decided.
The mill will be Nucor's largest for steel rebars, with an annual production capacity of 650,000 tons and is expected to be completed in two years, subject to regulatory approvals.
The domestic rebar market is expected to show continued strength in the backdrop of increasing U.S. infrastructure investments as part of Biden's $1 trillion infrastructure law, the steelmaker said in a statement.
Steel rebars, short for reinforcement bars, are used to bolster the tensile strength of concrete structures.
The company last month reported a decline in its quarterly profit on lower sales volumes across all segments, and also expects a fall in earnings in its steel products segment in the first quarter due to lower average selling prices.