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Nucor's (NUE) Net-Zero Steel Gets General Motors as 1st Customer

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Nucor Corporation NUE recently unveiled Econiq, a range of net-zero carbon steel products. It aims to promote the purchase of steel products with the lowest greenhouse gas emissions among its customers. Econiq is the first of its kind in the United States and will be available across the whole range of Nucor's steelmaking products.

Nucor’s recycled scrap-based electric arc furnace technology enables it to keep its greenhouse gas emission intensity at 70% below the industry average and meet the intensity benchmarks under the Paris Climate Agreement. With Econiq, Nucor is poised to advance its leadership by utilizing 100% renewable electricity and high-quality carbon offsets to negate any remaining emissions.

Nucor is among the prominent players in the steel space along with ArcelorMittal MT and United States Steel Corporation X. The company is enthusiastic to get General Motors Company GM as the first client for Econiq.

Econiq will be provided to General Motors starting first-quarter 2022. It is estimated that General Motors’ steel purchase from Nucor will be net carbon neutral by the end of 2022. Nucor expects customers in the auto, construction, renewable energy, and infrastructure sectors to be the initial ones to be interested in the purchase of Econiq. The company, through its efforts, is doing a commendable job to steer the industry toward sustainable steelmaking and lend its share to climate conscious goals.

General Motors noted that with Econiq, the company can inch closer to its vision of a net-zero emission future and lauds Nucor’s commitment to producing net-zero carbon steel solutions.

Nucor, last month, announced guidance for third-quarter 2021. It expects the quarter’s earnings to be between $7.30 and $7.40 per share. The company is gearing up to report the highest quarterly earnings in its history, surpassing its record earnings per share (EPS) of $5.04 in second-quarter 2021. This will also mark a significant improvement from EPS of 63 cents reported in the third quarter of 2020. This upbeat outlook is backed by strong demand across most of Nucor’s end markets and higher average selling prices, which is driving strong profitability in all of the three segments. The steel mills segment is expected to witness a sequential improvement in third-quarter earnings.

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