Nucor Corporation

How to control costs-Competition within the steel industry in United States and globally was intense and expected remain so. As the depth of the process of industrialization. The cost of workforce began to increase and the competition of raw material needs increased by the steel industry development. How to keep the competitiveness?

A key part of nucor's strategy was to continue making capital investments to improve plant efficiency and keep production costs low. The effective strategy are use the high-tech production technology and control the competition of raw meterial.

Produce with new technology, improve the production yield and reduce the cost of workforce. Currently, Nucor (in conjunction with two foreign-owned steel companies) operates a facility in Crawfordsville, Indiana that continuously casts sheet steel directly from molten steel without the need for heavy, expensive, and energy-consuming rollers. The process (known as Castrip), if successful, would allow an entire mill to be built in 1/6th the space of a 'mini-mill" and at 1/10th the cost of a traditional integrated mill. Nucor could develop its plant siates close to meterial origin, to eliminate the shipping costs and handing activities. Nucor has two pilot projects, one in Western Australia and one in Brazil, which are developing low-cost sources of iron for use in its mills.

Relationships with suppliers-The supplier is an important link in the production process. It may effect to the production cost. How the company stable the supplier team and establish long-term mutual supply and demand ?

The company sign an agreement with the suppliers for long-term supply cooperation. 1. In the agreement shall be specified the detail in the rights and obligations of the parties, clearly the conditions of mutual benefit.

2. Assess to credit rating, make different management to different level suppliers.

3.The company regularly or periodically evaluate suppliers and remove the unqualification long-term supply cooperation agreement

Nucor corporation announced that sign agreement with fresh water valley, Samarco and Canada iron ore supply company , to ensure the supply for the company in New Orleans. These three mining companies are suppliers for factory in Nucor Trinidad and Tobago.

Emerging market-As the develop of economy, the east region in Asia China and Korea keep developing to catch up America, make threaten to American market, how the Nucor corporation get the emerging market ?

The steel market exist in many different national market and competition was intense. Strategic alliances could be an effect way to get the emerging market, with the development of economy in some east regions, steel industry in Chinese and Korea make pressure to America, so make strategic alliances with other company, cooperation in strategy, share the resource, successful experience,