Nucor Corporation, the largest producer of beams in North America, announced Thursday that it has signed an agreement with Lugano, Switzerland-based Duferco Group to establish a 50/50 joint venture that will produce beams in Italy and distribute them in Europe and North Africa.
Nucor said that the joint venture will be established by mid-2008 and will encompass Duferco Group's beam-producing Duferdofin subsidiary and associated distribution companies.
Dan DiMicco, Nucor's CEO and board chairman, noted in a press release from the company, "For the last few years we have been saying that Nucor would enter into international steel production through joint ventures with culturally compatible partners where Nucor can leverage its particular operating know-how and intellectual property. We have been working with Duferco for some time to find the right fit for our two companies. We look forward to successful completion of the activities ahead to conclude the formation of this joint venture."
The final agreement to establish the joint venture company is dependent on completion of appropriate due diligence and on the approval of the relevant regulatory bodies, as well as the approval of the Boards of Directors of both companies.
Duferco's wholly owned subsidiary, Duferdofin, is a leading beam producer in Italy and southern Europe, with total annual production of beams and other long products at Duferdofin's plants in San Zeno, Pallanzeno and Giamorro exceeding 900,000 mt (in 2007). Duferdofin is also constructing a new merchant bar mill in Giamorro, expected to be operational in late 2008. Additional investments in these operations are now under review by Nucor and Duferco.