Nucor Acquires North Star Mill

North Star Steel announced that it has sold its steel manufacturing facility in Kingman, Ariz., to Nucor Steel Kingman, LLC, a subsidiary of Nucor Corp., for $35 million. Nucor will take immediate control of the facility.

Last month North Star announced that due to continued financial losses at the plant forced it to close the facility, which manufactures steel reinforcement bars and wire rod products.

“In our search for a reputable buyer for this facility, we are very pleased to have reached agreement with Nucor,” said Jim Thompson, president of North Star Steel. “Throughout the entire process, we have appreciated the support that the greater Kingman community has shown us, and we share in their hopes for the opportunities that new ownership may bring to this community.”

The Kingman facility has an annual melting capacity of 650,000 tons; however, the melt shop has not operated since January 2000. The rebar and wire rod rolling facility was idled by North Star earlier this month. Rolling capacity exceeds 500,000 tons annually.

"North Star stopped operating this facility because it could not find a way to make the facility economically viable," said Dan DiMicco, Nucor's Vice Chairman, president and CEO. "We will immediately begin discussing issues with state and local authorities, as well as with potential suppliers to find the most effective solution for profitably operating the plant. We have made no decisions on restarting the melt shop and will not begin operations until the proper engineering, financial, operating and state and local tax issues have been settled."