Universal Industrial Gases Expands with $100M Investment in South Carolina
In a major development for South Carolina’s industrial landscape, Universal Industrial Gases, a subsidiary of steel manufacturing giant Nucor Corporation, has announced plans to invest $100 million in a new state-of-the-art facility at Nucor’s Darlington County steel mill. The new plant will cover 200,000 square feet and is scheduled to open by December 2025. This expansion is a strategic move to enhance the production of critical industrial gases such as oxygen, nitrogen, and argon, which are integral to steel production and a variety of other industrial applications.
The new facility will primarily supply gases to Nucor’s steel mills, playing a crucial role in enhancing the efficiency and sustainability of Nucor’s operations. However, the plant will also cater to third-party clients, signaling UIG’s broader role in the U.S. industrial gas market, beyond its relationship with its parent company. The investment is not only a significant boost for the local economy but also marks a continued commitment by UIG to South Carolina, where it has maintained a presence for over 60 years.
A New Chapter in Industrial Gas Production
UIG's decision to expand its presence in South Carolina highlights the growing demand for industrial gases and the critical role these gases play in a variety of sectors. Industrial gases are essential for numerous applications in industries ranging from manufacturing and healthcare to energy and electronics. In particular, oxygen, nitrogen, and argon are integral to the steelmaking process, as they are used for combustion, cooling, and purging processes, all of which are key to producing high-quality steel.
The Darlington County facility will bolster UIG’s production capacity, ensuring that Nucor's mills have a steady and reliable supply of gases needed for steel production. The move also aligns with Nucor’s ongoing strategy to vertically integrate its supply chain and reduce its reliance on external suppliers. This integration not only ensures operational efficiency but also contributes to the company’s long-term sustainability goals by securing a consistent supply of key materials.
The Role of UIG in the Industrial Gas Market
UIG’s expansion is part of a broader strategy to enhance its role within the industrial gas sector. While UIG’s primary focus is supporting Nucor’s steel operations, the company also serves a wide range of third-party clients across the U.S. The Berkeley County plant in South Carolina is one of several production sites UIG operates nationwide, and its capacity to supply a variety of industries gives it a unique position in the market.
Industrial gases are used in a multitude of applications. In the steel industry, they are vital for processes like electric arc furnace steelmaking, where oxygen is blown into the furnace to increase temperature and efficiency. Nitrogen and argon, meanwhile, are used for various applications, including as protective gases in welding and metal fabrication. The demand for these gases is expected to continue growing, particularly as industries seek cleaner, more efficient methods of production, a trend that UIG is well-positioned to support with its expanded infrastructure.
A Commitment to South Carolina’s Growth
The $100 million investment in South Carolina is not just a strategic business decision for UIG and Nucor, but also an economic boost for the region. The new facility will bring dozens of new jobs to Darlington County, contributing to the area’s industrial development and creating opportunities for local workers in the growing industrial gas sector. The investment is also part of UIG's long-standing commitment to the state, where it has operated for six decades, building strong ties to local communities and fostering economic development.
Scott Pape, the General Manager of UIG, emphasized the importance of the new project, noting that it is an extension of the company's 60-year presence in South Carolina. "The project is part of Nucor’s strategy to produce its own industrial gases for use in its steel mills," Pape said. This continued investment underscores the vital role that UIG plays in supporting both Nucor's steel production and the wider industrial gas market.
The Future of Industrial Gas Production and Sustainability
As the industrial sector increasingly turns towards more sustainable practices, UIG’s expansion comes at a time when the demand for cleaner, more efficient production methods is higher than ever. The production and use of industrial gases play a significant role in efforts to reduce carbon emissions and improve energy efficiency. By vertically integrating its operations, UIG and Nucor are positioning themselves at the forefront of this shift, ensuring that their production processes remain not only cost-effective but also environmentally responsible.
The new facility is expected to adhere to the latest environmental standards, incorporating cutting-edge technology to minimize waste and energy consumption. This aligns with Nucor’s broader sustainability goals, which focus on reducing the environmental footprint of its operations while maintaining its leadership position in the steel industry.
Key Takeaways:
• $100M Investment: UIG is investing $100 million in a new 200,000 sq ft industrial gas facility at Nucor’s Darlington County steel mill, set to open in December 2025.
• Oxygen, Nitrogen, Argon: The facility will primarily produce air gases such as oxygen, nitrogen, and argon, crucial to steel production and various industrial processes.
• Local Economic Impact: The new facility will create dozens of new jobs, contributing to economic growth in Darlington County, South Carolina.
• UIG’s Role: UIG, a subsidiary of Nucor, not only supports Nucor’s steel operations but also serves a range of third-party clients across the U.S.
• Sustainability Focus: The facility will integrate advanced technologies to improve energy efficiency and reduce environmental impact, supporting Nucor's sustainability initiatives.
• 60-Year Presence: UIG has operated in South Carolina for over 60 years, reinforcing its long-term commitment to the state and its industrial landscape.
• Strategic Expansion: The project is part of Nucor’s strategy to produce its own industrial gases, reducing reliance on external suppliers and ensuring a steady supply for its steel mills.
