Worthington to Form Mexican Steel Processing Joint Venture
08/21/2007 - Worthington Steel signs agreement to acquire a 50% interest in privately held Serviacero Planos, which will own and operate existing service centers in Leon and Queretaro in central Mexico.
Worthington Steel Co. has signed an agreement to acquire a 50% interest in privately held Serviacero Planos.
The joint venture, to be known as Serviacero Worthington, will own and operate two existing Serviacero Planos steel service centers in Leon and Queretaro in central Mexico. The facilities will offer steel processing services such as slitting, multi-blanking and cutting-to-length to automotive, appliance and electronics related customers.
“This joint venture aligns with our stated goal of expanding our steel processing business beyond its current geographic boundaries into higher growth markets,” said Mark Russell, Worthington Steel President. “By joining with Serviacero, we will be able to immediately offer steel processing services to an increasing number of customers with current and expanding operations in Mexico. Worthington has a long history of successful joint ventures and we welcome the addition of Serviacero to this group.”
Annual sales for the joint venture are expected to be approximately $125 million initially.
Worthington Steel, a Worthington Industries company, is one of America’s largest independent steel processors of flat-rolled steel. Operating 12 facilities across the United States, the company offers a wide range of services, including acrylic coating, cleaning, cold-rolling, configured blanking, cutting-to-length, dry lubricating, edging, galvannealing, hot-dipped galvanizing, hydrogen annealing, pickling, slitting, stainless steel, temper rolling and tension leveling.
Worthington Industries is a leading diversified metal processing company with annual sales of approximately $3 billion. The Columbus, Ohio, based company is a premier North American value-added steel processor and a leader in manufactured metal products such as metal framing, metal ceiling grid systems, pressure cylinders, automotive past model service stamping and laser welded blanks. Worthington Industries and its subsidiaries employ more than 8,000 people and operate 64 facilities in 10 countries.
