On December 7, 1986, F. Kenneth Iverson, chairman and chief executive officer (CEO) of Nucor Corporation, awaited a delegation from SMS Schloemann-Siemag, a leading West German supplier of steelmaking equipment, at his company’s headquarters in Charlotte, North Carolina. Iverson had to decide whether to commit Nucor to a new steel mill that would commercialize thinslab casting technology developed by SMS. Preliminary estimates indicated that the mill would cost $280 million, and that start-up expenses and working capital of $30 million each would push the total cost to $340 million, or nearly as much as Nucor’s net worth. Successful commercialization of thin-slab casting would let Nucor enter the flat sheet segment that accounted for half the U.S. market for steel. SMS’s compact strip production (CSP) process was, however, just one of several competing, commercially unproven thin-slab casting technologies, all of which might be leapfrogged by the turn of the century. As Iverson wrestled with these trade-offs, he reviewed the state of competition in the U.S. steel industry in general and Nucor’s position within it in particular.…