Mitsui & Company (USA) Inc., a wholly owned subsidiary of Mitsui & Company Ltd., on March 2 announced that it entered into a definitive agreement with Nucor Corporation to jointly form a new partnership that will serve as a platform to establish steel-related projects both in North America as well as globally.
Mitsui and Nucor will each indirectly hold a 50 percent share in the new company to be named NuMit LLC. As part of the agreement, Mitsui will contribute 100 percent of Louisville, Ky.-based Steel Technologies Inc. into NuMit, and then Nucor will acquire a 50 percent interest in NuMit. Mitsui intends to invest the proceeds of the transaction to further expand NuMit. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.
"Mitsui's announcement today marks the next chapter in our growth and commitment to the North American steel industry," said Masaaki Fujita, president and CEO of Mitsui & Company (USA) Inc. "Supported by Mitsui's global steel expertise and Nucor's manufacturing capabilities, NuMit will play an important role in implementing our North American and global business strategies and enhancing our upstream/downstream value chain. Through NuMit we will broaden and deepen our penetration in existing markets, while exploring expansion and growth opportunities through new business initiatives."
NuMit will own 100 percent of the assets of Steel Technologies, of which Mitsui has been the sole shareholder since 2007. Steel Technologies operates 23 flat rolled steel processing facilities throughout the U.S., Canada and Mexico.
Steel Technologies will serve as the foundation for the newly established NuMit, and will remain as an independent operating unit with the current management team maintaining responsibility for the company's performance. Steel Technologies will maintain its independent platform to best serve its customers with the most efficient supply chain. This independence will allow Steel Technologies to continue providing unsurpassed service, quality, logistics and value to the North American market place.
Through the joint venture, Mitsui will endeavor to enhance its position as one of the market leaders in the North American steel processing industry. As a first step, Steel Technologies will assume responsibility for Nucor's previously announced plans to open a new greenfield flat rolled processing center in Monterrey, Mexico. The operation will install slitting and CTL capabilities, with the possible addition of pickling in the future, to serve the growing market demand in the region.
About Steel Technologies
Steel Technologies Inc., headquartered in Louisville and a wholly owned subsidiary of Mitsui & Company (USA) Inc., operates 23 steel processing facilities throughout the U.S., Canada and Mexico. It is a leading steel processor that leverages its broad geographic network of operations to deliver value added products and services to customers in a variety of industries.
About Nucor Corporation
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel – in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and non ferrous scrap. Nucor is North America's largest recycler.
About Mitsui & Company (USA) Inc.
Mitsui & Company (USA) Inc. is the largest wholly owned subsidiary of Mitsui & Company Ltd., a diversified global investment and service enterprise based in Tokyo. Mitsui has operations in iron and steel products and materials, infrastructure projects, machinery, information technology, chemicals, plastics and consumer products, among others.