Charlotte, North Carolina, US-based steelmaker Nucor Corporation (Nucor) announced on March 2 that it has entered into an agreement with Mitsui USA, the largest overseas subsidiary of Mitsui & Co. Ltd., Japan, wherein each would indirectly own a 50 percent interest in a newly created company, NuMit LLC.
According to Nucor's statement, NuMit will invest in various steel and steel-related activities, both in North America and globally. Coinciding with the formation of NuMit will be its first investment, Steel Technologies LLC, which will own all of the assets, operations and business currently held by Mitsui in Steel Technologies, Inc. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.
Steel Technologies operates 23 sheet processing facilities throughout the US, Canada and Mexico. It will continue to operate as an independent unit with the existing management team, maintaining responsibility for the performance of the business. This management structure will allow Nucor to continue its long-standing supply chain relationships with other sheet processing companies, while at the same time allowing Steel Technologies the ability to independently manage its supply needs. Nucor's focus will remain on providing the most efficient supply chain solutions for all of its customers.
Nucor's previously announced plans to construct a greenfield flat rolled processing center in Monterrey, Mexico will be implemented by Steel Technologies LLC. The processing center is expected to include pickling, slitting and cut-to-length capabilities to serve customers in Mexico.
Commenting on the new joint venture, Nucor's CEO and chairman Dan DiMicco noted, "We are very excited about forming the NuMit venture with Mitsui. For several years, Nucor has stressed the importance of finding the right partners to grow with internationally. Mitsui fits the criteria and will complement Nucor's other growth efforts. The excellence of both companies, Mitsui's global market experience and Nucor's operational and technological expertise will allow us to seize opportunities that may not otherwise exist."