Nucor, Duferco to Form Joint Venture to Produce, Distribute Beams
01/11/2008 - Nucor signs Memorandum of Understanding with the Duferco Group to establish a 50/50 joint venture for the production of beams in Italy and the distribution of beams in Europe and North Africa.
Nucor Corp. has signed a Memorandum of Understanding with the Duferco Group, Switzerland, to establish a 50/50 joint venture for the production of beams in Italy and the distribution of beams in Europe and North Africa.
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“We have enjoyed an excellent business relationship with Nucor over the years, and the prospect of a structured cooperation with our American friends is certainly an attractive step, given their impressive record of operating excellence,"
Bruno Bolfo
Duferco Chairman
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The joint venture will encompass the Duferco Group's Italy-based Duferdofin subsidiary and associated distribution companies. Duferdofin, a wholly owned subsidiary of the Duferco Group, is a leader in beam production in Italy and South Europe. The Group produces beams and other long products from its plants in San Zeno, Pallanzeno and Giamorro, with production in excess of 900,000 tonnes in 2007.
Duferdofin also has a new merchant bar mill under construction in Giamorro that is expected to be operational in the fall of 2008, and additional investments in the Italian operations are under review by Nucor and Duferco.
Internationally recognized for its efficient combination of technology and people, Nucor would bring to the contemplated joint venture its considerable technical and commercial expertise. As the largest producer of beams in North America, Nucor produced approximately 3 million tons beams in 2007.
"In a rapidly consolidating steel industry environment, Duferco has chosen the direction of strategic alliances with major players in order to continue operating on a global level," said Duferco Chairman, Bruno Bolfo. “We have the culture and experience to successfully develop these alliances for the ultimate benefit of both our customers and our employees.”
Nucor's CEO and Chairman, Dan DiMicco noted that "for the last few years we have been saying that Nucor would enter into international steel production through joint ventures with culturally compatible partners where Nucor can leverage its particular operating know-how and intellectual property. We have been working with Duferco for some time to find the right fit for our two companies. We look forward to successful completion of the activities ahead to conclude the formation of this joint venture."
“We have enjoyed an excellent business relationship with Nucor over the years, and the prospect of a structured cooperation with our American friends is certainly an attractive step, given their impressive record of operating excellence," concluded Bolfo.
Although Nucor and Duferco will now begin the tasks necessary to establish the joint venture company by a target of mid-2008, final agreement for its establishment will depend on completion of appropriate due diligence, approval of appropriate regulatory bodies, and approval of the Boards of Directors of both companies.
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products include carbon and alloy steel bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor is North America's largest recycler.
