Nucor Stakes Another Claim in HSS Market
12/06/2016 - Nucor Corp. has signed a deal to acquire Alabama-based Southland Tube Inc., America’s third-largest producer of hollow structural sections, for US$130 million.
"The acquisition of Southland Tube is an excellent fit for our Nucor family and our strategy for profitable growth," Nucor chairman and chief executive John Ferriola said in a statement.
"It complements our recent acquisition of Independence Tube in the (hollow structural sections) market. We see this market as a great opportunity to leverage Nucor's capabilities and strengths while also adding to our portfolio of products and services for our customers."
Southland Tube has one facility, located in Birmingham, Ala., USA, and about 280 non-union workers. It annually ships about 240,000 tons of hollow structural sections, Nucor said.
Nucor said it is building a market leadership position in hollow structural sections through the Southland and Independence Tube acquisitions and, at the same time, is providing an additional outlet for Nucor's sheet mills.
Nucor said that in 2006, shipments to its downstream businesses accounted for 8% of its overall mill shipments that year. With the two tube deals, it expects that share to grow to about 20%, Nucor said.
"It complements our recent acquisition of Independence Tube in the (hollow structural sections) market. We see this market as a great opportunity to leverage Nucor's capabilities and strengths while also adding to our portfolio of products and services for our customers."
Southland Tube has one facility, located in Birmingham, Ala., USA, and about 280 non-union workers. It annually ships about 240,000 tons of hollow structural sections, Nucor said.
Nucor said it is building a market leadership position in hollow structural sections through the Southland and Independence Tube acquisitions and, at the same time, is providing an additional outlet for Nucor's sheet mills.
Nucor said that in 2006, shipments to its downstream businesses accounted for 8% of its overall mill shipments that year. With the two tube deals, it expects that share to grow to about 20%, Nucor said.
