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Thanks for sharing about Nucor. Learned something new today. I understand Nucor did 3 things differently. First it used scrap metal as input and smaller elect
by sh87 7y ago
Thanks for sharing about Nucor. Learned something new today.
I understand Nucor did 3 things differently.
First it used scrap metal as input and smaller electric arc furnace for melting. Meant it could set shop near scrap source and sell to local construction market saving on shipping costs.
Second, they did away with unions with their smaller employee base and could pay them lesser than their counterparts could pay their unionized workforce.
Third, the mini mill format meant cheaper setup cost and they could pause operations at lower operational and maintenance costs which again their counterparts could not.
This makes sense for Nucor.
For Arrival however, given their target is the commercial van market, I don't see what is backing up their claim to keep the cost of the car low by setting up shop closer to the customer.