Nucor may take over assets of American Iron Reduction

Nucor may take over assets of American Iron Reduction

According to market reports, largest steelmaker in the US, Nucor Corp. stated that they want to acquire assets of American Iron Reduction which is running idle since September 1999. The plant located in Convent, Louisiana, has an annual 1'400'000 tons of direct reduced iron capacity and it is believed that this amount is likely to hold back the upward trend in raw material markets. Furthermore, there are some other investments of Nucor in Brazil with Companhia Vale do Rio Doce (CVRD) and Western Australia with Rio Tinto, Mitsubishi Corp. and Shougang Corp. The Green Pig Iron project with CVRD, planned to commence in late 2004, will produce 380'000 mts of pig iron. The latter investment in W.Australia consists of a joint venture which will construct a commercial scale plant in Kwinana, namely Hlsmelt, with substantial further expansion capabilities. The plant, converting iron ore to liquid metal, will have a production capacity of 800'000 mts per annum and is expected to launch production in November 2004.