Nucor adds to downstream holdings

Charlotte, North Carolina-based electric arc furnace (EAF) steelmaker Nucor Corp. says it has reached agreements to acquire a majority ownership position in California Steel Industries Inc. (CSI). That Fontana, California, company converts semi-finished steel into hot-rolled, pickled and oiled, cold-rolled, galvanized and electric-resistance welded (ERW) pipe products.

Nucor says it has purchased a 50 percent equity interest in CSI from a subsidiary of Brazil-based Vale S.A. and a 1 percent equity ownership stake from Japan-based JFE Steel Corp. (JFE). CSI will become a joint venture between Nucor and JFE, pending regulatory approvals. Nucor will pay a cash purchase price to Vale of $400 million for the 50 percent stake.  

“Acquiring a majority ownership stake in California Steel Industries expands our geographic reach in sheet steel and gives us a strong presence on the West Coast,” says Leon Topalian, president and CEO of Nucor Corp.

When the acquisition is completed, it will be Nucor’s second joint venture with JFE. Since 2020, the two companies have been operating an automotive steel joint venture in Mexico. That facility in Silao, Mexico, has the capacity to produce 400,000 tons of galvanized steel for the automotive industry per year.