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Item 1.Business, continued

the tariffs in

Products from both segments are marketed principally through in-house sales forces. The principal competitive factors are price and service. Considerable competition exists from numerous domestic manufacturers and foreign imports. During 2000 and 2001, imports of steel increased significantly, much of it at illegally dumped prices. In March 2002, the ITC generally has ruled againstBush Administration imposed a series of tariffs for many products over a three-year period that helped reduce the flood of imports. In December 2003, the Administration chose to end the temporary steel safeguard tariffs, known as Section 201, prior to their scheduled expiration; however, we are encouraged by the Bush Administration’s commitment to strengthen existing U.S. steel industry regarding incremental dutiestrade laws by closing the loopholes that permit import surges, circumvention of existing laws and tariffs.repetitive dumping.

Nucor believes that the most significant factors with respect to its competitive position are the low cost and efficiency of its production processes. The markets that Nucor serves are tied to capital and durable goods spending and are affected by changes in economic conditions.

On July 22, 2002, Nucor’s wholly owned subsidiary,

In March 2001, Nucor Steel Decatur, LLC, purchased substantially all of the assets of TricoAuburn Steel Company, LLC (“Trico”)Inc.’s steel bar facility in Auburn, New York for a purchase priceapproximately $115,000,000. This facility has the capacity to produce up to 450,000 tons of $117,700,000.merchant bar quality steel shapes, special bar quality steel shapes and rebar. In November 2001, Nucor acquired ITEC Steel, Inc. and its wholly owned subsidiary, Steel Truss and Frame Corp., with facilities in Texas and Georgia, for approximately $11,000,000, including liabilities assumed. These facilities, now known as Nucon Steel, produce light gauge steel framing. The purchase price included approximately $86,000,000 of Trico’s debt that was assumed by Nucor. Located in Decatur, Alabama, the sheet steel facility originally began operations in 1997 and has an annual capacity of approximately 1,900,000 tons. This acquisition wasacquisitions were not material to the consolidated financial statements and did not result in material goodwill or other intangible assets.

On December 9,

In April 2002, Nucor entered a joint venture with The Rio Tinto Group, Mitsubishi Corporation and certain of its wholly owned subsidiaries purchased substantially all ofChinese steelmaker, Shougang Corporation, to construct a commercial HIsmelt^™ plant in Kwinana, Western Australia. The HIsmelt process converts iron ore fines and coal fines directly to liquid metal eliminating the assets of Birmingham Steel Corporation (“Birmingham Steel”)need for a cash purchase price, excluding transaction costs,blast furnace, sinter/pellet plants and coke ovens. The HIsmelt technology would offer an alternative supply of high-quality iron units as a scrap substitute. Nucor has a 25% interest in the joint venture that owns the HIsmelt commercial plant. Construction is approximately $615,000,000, including $116,900,00050% completed and production is scheduled to begin in inventory and receivables. Primary assets purchased were Birmingham Steel’s four operating mills in Birmingham, Alabama; Kankakee, Illinois; Seattle, Washington; and Jackson, Mississippi, with a combinedthe fourth quarter of 2004. This plant will have an annual capacity of approximately 2,000,000800,000 metric tons. This acquisition did not result in goodwill or other intangible assets.

Nucor began operations of its 100% owned Castrip^® facility in Crawfordsville, Indiana, in May 2002. This facility uses the breakthrough technology of strip casting, to which Nucor holds exclusive rights in the United States and Brazil. Strip casting involves the direct casting of molten steel into final shape and thickness without further hot or cold rolling, allowing lower investment and operating costs, reduced energy consumption and smaller scale plants than can be economically built with current technology. This process also reduces the overall environmental impact of producing steel through significantly lower emissions, particularly NOx. Our teamDuring the second half of 2003, process improvements were made that increased the output of the Castrip facility, improved product quality and improved the life of key consumables. Multi-ladle casting sequences are now part of routine production. Increased production and improved product quality are expected to continue in Crawfordsville2004.

In July 2002, Nucor’s wholly owned subsidiary, Nucor Steel Decatur, LLC, purchased substantially all of the assets of Trico Steel Company, LLC for a purchase price of $117,700,000. Located in Decatur, Alabama, the sheet steel facility originally began operations in 1997 and has succeededan annual capacity of approximately 1,900,000 tons. The purchase strategy called for a major renovation of the facility. Capital expenditures for this facility were approximately $68,000,000 in producing prime, saleable coils,2002 and $17,000,000 in 2003. Nucor Steel Decatur experienced equipment problems during start-up in the plant is now staffedsecond quarter of 2003; however, we have overcome these issues to operate 24 hoursbuild volume rapidly and improve quality. This acquisition was not material to the consolidated financial statements and did not result in goodwill or other intangible assets.

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Item 1. Business, continued

In December 2002, Nucor and certain of its wholly owned subsidiaries purchased substantially all of the assets of Birmingham Steel Corporation (“Birmingham Steel”) for a day, seven dayscash purchase price, excluding transaction costs, of approximately $615,000,000, including $116,900,000 in inventory and receivables. Primary assets purchased were Birmingham Steel’s four operating mills in Birmingham, Alabama; Kankakee, Illinois; Seattle, Washington; and Jackson, Mississippi, with a week.combined annual capacity of approximately 2,200,000 tons. This acquisition did not result in goodwill or other intangible assets.

In March 2003, Nucor’s wholly owned subsidiary, Nucor Steel Kingman, LLC, purchased substantially all of the assets of the Kingman, Arizona steel facility of North Star Steel (“North Star”) for approximately $35,000,000. The purchase price did not include working capital and Nucor assumed no material liabilities of the North Star operation. This acquisition was not material to the consolidated financial statements and did not result in goodwill or other intangible assets.

In April 2002,2003, Nucor entered a joint venture with TheCompanhia Vale do Rio Tinto Group, Mitsubishi Corporation and Chinese steel maker, Shougang Corporation,Doce (“CVRD”) to construct and operate an environmentally friendly pig iron project in northern Brazil. The project will utilize two conventional mini-blast furnaces to produce about 380,000 metric tons of pig iron per year in its initial phase, using CVRD iron ore from its Carajas mine in northern Brazil. The charcoal source will be exclusively from eucalyptus trees grown in a commercial HIsmelt plantcultivated forest of 82,000 acres with the total forest encompassing approximately 200,000 acres in Kwinana, Western Australia. Demolitionnorthern Brazil. The cultivated forest removes more carbon dioxide than the blast furnace process emits. It is anticipated that Nucor will purchase all of the pilot plant is completed and constructionproduction of the commercial facility has begun. The HIsmelt process converts iron ore fines and coal fines directlyplant. Production is scheduled to liquid metal eliminatingbegin in late 2004.

In January 2004, Nucor entered into an agreement with Harris Steel Group, Inc., for the needpurchase of a one-half interest in its wholly owned subsidiary, Harris Steel, Inc., for a blast furnace, sinter/pellet plants and coke ovens. The HIsmelt technology would offercash purchase price of approximately $21,000,000. In addition, Harris Steel Group may receive up to an alternative supplyadditional $6,000,000 upon the achievement of high-quality iron units as a scrap substitute. Nucor has a 25% interestcertain operating results of the venture over the next five years.

Nucor’s backlog of orders at December 31, 2003 was about $1,431,000,000 ($1,197,000,000 in the joint venture that ownssteel mills segment and $234,000,000 in the HIsmelt commercial plant.

steel products segment). Nucor’s backlog of orders at December 31, 2002 was about $816,000,000 ($628,000,000 in the steel mills segment and $188,000,000 in the steel products segment). Nucor’s backlog of orders at December 31, 2001 was about $794,000,000 ($632,000,000 in the steel mills segment and $162,000,000 in the steel products segment). These backlogs are normally filled within one year.

Nucor is highly decentralized and has approximately 4855 employees in its executive offices. All of Nucor’s 9,8009,900 employees are engaged in its steel mills and steel products businesses.

Additional information on Nucor’s business is incorporated by reference to Nucor’s 2002 annual report,2003 Annual Report, pages 9 through 17.

Nucor’s annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and all amendments to these reports are available without charge through Nucor’s website,www.nucor.com, as soon as reasonably practicable after such material is electronically filed with, or furnished to, the Securities and Exchange Commission. Except as otherwise stated in these reports, the information contained on our website or available by hyperlink from our website is not incorporated into this Annual Report on Form 10-K or other documents we file with, or furnish to, the Securities and Exchange Commission.

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Item 2. PropertiesProperties

Our principal operating facilities by segment are as follows:

   460,000

Joists, deck