Nucor (NYSE:NUE) is ranked number 14 among the top producers of steel in the world. This is taken from a list (2010) of the largest steel-producing companies in the world.
Nucor is said to be North America’s largest recycler of any material, recycling one ton of steel every two seconds.
What is different about Nucor? It is among the largest of the “mini-mill” operators. These are the type that use electric arc furnaces to melt the scrap steel.
In addition to its mini-mill, Nucor was a pioneer of another technology — called thin-strip casting. This reduced the need for manpower and energy.
Traditionally, steel was using integrated steel works, with blast furnaces to make the steel. Many of the established steel plants ignored new technology, because of a comfortable high profit they enjoyed. This opened the door for companies willing to take the lower road and those that incorporated disruptive technology.
While many of America’s steel manufacturers hung on to traditional steel making methods, Nucor embraced new technologies. The risk paid off.
The company used innovative methods that were very unconventional for the time. Nucor stripped the managerial layers that weigh down most corporations. The unconventional results were spectacular. The company claims it never had a layoff for lack of work. Now this is truly remarkable.
Another feat for the unconventional company — over five years running, the company prides itself on a 371% return to shareholders. That’s pretty impressive. And Nucor pays its employees well above the industry standards. You won’t find that in today’s standard model of corporate downsizing.
Nucor’s motto:
Employees — not managers — drive our success.
