Nucor, Mitsui to Form Steel Processing Joint Venture
03/04/2010 - Nucor Corp. and Mitsui & Co. (U.S.A.) have entered into a 50-50 joint venture in which newly created NuMit LLC will own and operate a flat rolled steel processing network and other steel related projects throughout North America.
Nucor Corp. and Mitsui & Co. (U.S.A.), Inc. have entered into an agreement in which each would indirectly own a 50% interest in a newly created company, NuMit LLC that will own and operate a flat rolled steel processing network and other steel related projects throughout North America. The new venture will combine Nucor’s competitiveness as a steelmaker with Mitsui’s global steel market experience.
Mitsui USA will contribute Steel Technologies Inc. (a wholly owned subsidiary) into NuMit LLC, and then 50% of the interest in NuMit will be sold to Nucor. Steel Technologies will serve as the foundation for NuMit, and will enhance its flat rolled steel processing operations in North America.
Steel Technologies will continue to operate as an independent unit with the existing management team maintaining responsibility for the operation of its 23 sheet processing facilities throughout the U.S., Canada and Mexico. This management structure will allow Nucor to continue its long-standing supply chain relationships with other sheet processing companies while also enabling Steel Technologies to independently manage its supply needs.
As a first step, Steel Technologies will implement the new greenfield flat rolled processing facility that Nucor had previously announced it would construct in Monterrey, Mexico, where steel demand is increasing remarkably due to an ongoing entry of manufacturers from all over the world. The processing center is expected to include pickling, slitting and cut-to-length capabilities to serve customers in Mexico.
“We are very excited about forming the NuMit venture with Mitsui,” said Dan DiMicco, Nucor's CEO and Chairman. “For several years, Nucor has stressed the importance of finding the right partners to grow with internationally. Mitsui fits that criteria and will complement Nucor's other growth efforts. The excellence of both companies, Mitsui's global market experience and Nucor's operational and technological expertise will allow us to seize opportunities that may not otherwise exist.”
Steel processing facilities under NuMit, as an independent operating unit, will purchase steel from a variety of suppliers, continue ongoing stable relationships with them, and provide unsurpassed services with wide variety of processing and quality needs.
Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.
Nucor and affiliates manufacture steel products, with operating facilities primarily in the U.S. and Canada. Products produced 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, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and non ferrous scrap. Nucor is North America's largest recycler.
Mitsui & Co. (U.S.A.), Inc. is a wholly owned subsidiary of Mitsui & Co., Ltd.
