Nucor Expands Plate-Making Capabilities Through Acquisition
07/20/2016 - Nucor Corp. is acquiring a plate mill from a mining equipment manufacturer for about US$29 million, the steelmaker announced on Thursday.
"This acquisition builds on our strategy to capture a growing share of higher value-added plate products and complements the capabilities of our two existing plate mills," said Nucor chairman and chief executive John Ferriola in a statement.
"The … mill will serve as a valuable addition to Nucor's plate product offerings, which we believe can be further leveraged by our Nucor commercial team."
Nucor is acquiring the mill, which is in Longview, Texas, from mining equipment maker Joy Global Inc. The mill produces carbon and alloy plate products and has heat-treating capabilities. It will give Nucor an additional 180,000 tons of annual capacity, Nucor said.
Nucor's existing plate mills are in North Carolina and Alabama and have a combined capacity of 2.9 million tons per year.
The Longview mill is capable of producing plates in thicknesses of between 1 and 12 inches and in widths of up to 138 inches wide. The mill employs approximately 140.
Joy Global told the Longview (Texas) News-Journal newspaper in April that it was negotiating a sale of the 65-year-old mill.
"This opportunity has the potential to bring added resources to the steel mill operation and further its capabilities, allowing us to focus on our core strategies to drive profitable growth," Rodney Bull, a vice president and the mill’s general manager, told the newspaper at the time.
Joy has been struggling through the commodities slump and has been looking at selling ancillary assets as a way to cut costs and raise cash.
"The … mill will serve as a valuable addition to Nucor's plate product offerings, which we believe can be further leveraged by our Nucor commercial team."
Nucor is acquiring the mill, which is in Longview, Texas, from mining equipment maker Joy Global Inc. The mill produces carbon and alloy plate products and has heat-treating capabilities. It will give Nucor an additional 180,000 tons of annual capacity, Nucor said.
Nucor's existing plate mills are in North Carolina and Alabama and have a combined capacity of 2.9 million tons per year.
The Longview mill is capable of producing plates in thicknesses of between 1 and 12 inches and in widths of up to 138 inches wide. The mill employs approximately 140.
Joy Global told the Longview (Texas) News-Journal newspaper in April that it was negotiating a sale of the 65-year-old mill.
"This opportunity has the potential to bring added resources to the steel mill operation and further its capabilities, allowing us to focus on our core strategies to drive profitable growth," Rodney Bull, a vice president and the mill’s general manager, told the newspaper at the time.
Joy has been struggling through the commodities slump and has been looking at selling ancillary assets as a way to cut costs and raise cash.
