U. S. Steel, Worthington to Expand Specialty Processing Joint Venture
09/24/2008 - United States Steel and Worthington Industries announce plans to expand and modify their current Worthington Specialty Processing joint venture with the addition of U.S. Steel’s ProCoil steel processing subsidiary and Worthington’s Worthington Steel Taylor subsidiary.
United States Steel Corp. and Worthington Industries, Inc. have signed an agreement to expand and modify their current Worthington Specialty Processing joint venture located in Jackson, Mich.
Under terms of the expanded agreement, U. S. Steel would contribute its ProCoil Co. LLC steel processing subsidiary in Canton, Mich., and Worthington Industries would contribute its Worthington Steel Taylor steel processing subsidiary in Taylor, Mich., to the expanded joint venture.
Although Worthington Specialty Processing is currently a 50-50 joint venture, Worthington Industries will own 51% of the joint venture under the new agreement, with U. S. Steel owning the remaining 49%. Worthington Industries will continue to be the managing partner.
The companies expect the newly expanded joint venture will be in position to better serve the changing needs of automotive and flat-rolled customers by allowing each of the three entities to maximize their individual processing specialties.
ProCoil slits, cuts-to-length and presses blanks from steel coils to desired specifications, provides laser welding services and warehouses material for automotive customers. Worthington Steel Taylor slits, cuts-to-length and tension levels steel coils.
Both Worthington Industries and U.S. Steel anticipate closing the transaction in early October, subject to customary closing conditions.
Worthington Specialty Processing is capable of processing master steel coils into both slit coils and sheared first operation blanks including rectangles, trapezoids, parallelograms and chevrons. The joint venture was established in 1986 to serve automotive manufacturers' need for high-quality, class-one processing.
