Nucor Corporation announced Wednesday that it has signed a memorandum of understanding (MoU) with Sidenor S.A. for the purchase of a 34 percent share of a new joint venture to be formed for the production and distribution of long steel products and plate in the Balkans, Turkey, Cyprus and North Africa.
The joint venture will include all of the steelmaking and related activities of Sidenor, excluding the activities and assets of Corinth Pipe Works.
Sarados Milios, CEO of Sidenor, told press, "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, and we strongly believe that this cooperation will bring many benefits to both companies."
Dan DiMicco, CEO and Chairman of Nucor, commented, "We are very happy to work with Sidenor towards a joint venture that will join and leverage the excellent people and operations of both companies. In our discussions, we have been repeatedly impressed by the cultural compatibility of our two companies. We look forward to the formal establishment of the joint venture and beginning our work together."
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.
Sidenor is the largest producer of steel in Greece with additional steelmaking, rolling and reinforcing mesh operations in Bulgaria and the Former Yugoslavian Republic of Macedonia. Total 2007 steel production was approximately two million metric tons and, with the recent addition of a new rolling mill in Bulgaria, Sidenor's total steel rolling capacity will reach over 3.6 million metric tons by 2009.
Nucor is the largest steelmaker in North America with 2007 total annual production of over 23 million tons. Also this week, Nucor announced that it will form a joint venture with Duferco for the production of beams in Italy and the distribution of beams in Europe and North Africa.