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Alabama Steel Plant's Shutdown: 79 Layoffs as Nucor Shifts Production to Texas

Synopsis: Nucor Buildings Group is set to close its service center in Eufaula, Alabama, by late April 2025, resulting in 79 layoffs. The decision is part of a strategic shift in production, with the company redirecting its operations to a facility in Texas. This closure is the latest in a series of restructuring moves, which include a previous layoff of 230 employees in 2020. Nucor is working to relocate workers to other positions within the company.
Thursday, February 27, 2025
NUCOR
Source : ContentFactory

Nucor Steel Plant in Eufaula to Close: A Strategic Shift

In a recent WARN notice published by the Alabama Department of Commerce, Nucor Buildings Group announced that its Eufaula facility in east Alabama would be shut down, resulting in the layoff of 79 workers by late April 2025. The company’s decision to close the service center stems from a strategic business realignment, with production shifting to a facility in Texas. This closure is a part of Nucor’s ongoing efforts to adjust its workforce in accordance with current market demands.

Nucor, one of the leading steel manufacturers in the U.S., confirmed that the Eufaula service center, located in the city of Eufaula, will be closed, and production will be redirected to the Texas location. A company spokesperson, Katherine Miller, stated in an email to AL.com that the change was a necessary step to better align with the company’s business needs.

The Eufaula facility, which is owned by Nucor according to Barbour County property records, is operated by Nucor's subsidiary, American Buildings. This service center has been central to Nucor’s operations in Alabama but is now being phased out as the company pivots to a more efficient production model.

Background of the Eufaula Plant and Its History

The closure of the Eufaula service center is not the first significant workforce reduction at this facility. In the fall of 2020, Nucor had already laid off roughly 230 employees due to pandemic-related sales impacts. During that time, the company restructured its operations and began focusing on producing structural parts for metal buildings, leaving only 80 employees in place. This restructuring marked the beginning of Nucor’s effort to transform the site into a more specialized manufacturing center.

Following these layoffs, Nucor renamed the plant “Nucor Buildings Group Texas-Alabama” to reflect the shift in its operational focus. However, the current closure, which is scheduled for April 2025, signals that Nucor’s evolving business strategy now requires moving operations to its Texas facility.

The Impact on Employees and Community

The 79 layoffs at the Eufaula facility will impact the small town of about 12,500 residents, located near the Georgia border. Nucor, however, has expressed its commitment to helping impacted employees transition by offering assistance in finding other opportunities within its statewide operations. The company has emphasized its efforts to relocate workers to other positions within its various divisions.

Despite these measures, the closure adds to the growing number of mass layoffs in Alabama. According to the Alabama Department of Commerce, 2025 has already seen nearly 1,500 workers affected by scheduled layoffs across the state, with the Nucor closure contributing significantly to this total.

Nucor's Strategic Shift and National Impact

The closure of Nucor's Eufaula service center reflects broader trends in the steel industry, where companies are continuously adjusting their production strategies in response to evolving market demands. Nucor, which has long been a leader in steel manufacturing, is pivoting towards more efficient production models and optimizing its operations across the country.

The shift to the Texas facility suggests that Nucor is looking to consolidate its operations in regions that offer more cost-effective and efficient production capabilities. This change is expected to improve operational efficiency but may come at the cost of jobs in specific regions, like Alabama.

Key Takeaways:

• 79 employees at Nucor's Eufaula, Alabama, service center will be laid off due to a facility closure by April 2025.

• The decision to close the plant is part of Nucor’s strategic realignment, with production shifting to a Texas facility.

• In 2020, Nucor had already laid off 230 employees due to the impact of the COVID-19 pandemic and had restructured the plant to focus on metal building parts.

• The closure of the Eufaula facility adds to the growing list of mass layoffs in Alabama, with nearly 1,500 workers affected in 2025 alone.

• Nucor is working to reassign affected employees to other roles within the company’s Alabama operations.

• The shift in production reflects a broader trend in the steel industry towards cost-efficient and optimized manufacturing processes.

• Nucor Buildings Group, a subsidiary of Nucor, operates the Eufaula facility, which was the company’s only Alabama plant.