Nucor to form Joint Venture with Sidenor
05/15/2008 - Nucor signs MoU with Sidenor regarding a new joint venture for the production and distribution of long steel products and plate in the Balkans, Turkey, Cyprus, and North Africa.
Nucor Corp. has signed a Memorandum of Understanding with Sidenor SA to purchase a 34% share of a new joint venture the companies are to form for the production and distribution of long steel products and plate in the Balkans, Turkey, Cyprus, and North Africa.
The joint venture would include all of Sidenor’s steelmaking and related activities, with the exception of the activities and assets of Corinth Pipe Works.
“We are pleased that a company with the reputation and capabilities of Nucor Corporation has agreed to join with Sidenor to further its strategic growth in the rapidly developing markets of southeastern Europe,” said Sarados Milios, CEO of Sidenor, “and we strongly believe that this cooperation will bring many benefits to both companies.”
Sidenor operates steel plants in Thessaloniki and Almyros (Sovel) in Greece. The company has additional steelmaking, rolling and reinforcing mesh operations in Pernik, Bulgaria (Stomana Industry), and in Dojran in the Former Yugoslavian Republic of Macedonia (Dojran Steel). Sidenor also operates steel distribution centers throughout the Balkans, either alone or with partners.
As the largest producer of steel in Greece, Sidenor’s total steel production was nearly two million tons in 2007, with volumes expected to grow significantly in the near future. Sidenor recently began operation of a new rolling mill at its Stomana Industry plant in Bulgaria, which will bring Sidenor's total steel rolling capacity to more than 3.6 million tonnes per year by 2009.
“We are very happy to work with Sidenor toward a joint venture that will join and leverage the excellent people and operations of both companies,” commented Dan DiMicco, CEO and Chairman of Nucor. “In our discussions, we have been repeatedly impressed by the cultural compatibility of our two companies.”
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 steel in North America, Nucor produced more than 23 million tons of steel in 2007.
“We look forward to the formal establishment of the joint venture and beginning our work together,” concluded DiMicco.
Final agreement to establish the joint venture company is dependent 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 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 Co., 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.
