Nucor Forms JV with Mitsui USA

Mitsui & Co. Inc., a wholly owned subsidiary of Mitsui & Co. Ltd., has entered into an agreement with Nucor Corp. to jointly form a partnership that will serve as a platform to establish steel-related projects throughout the world.

Both companies will indirectly hold a 50 percent share in the company, to be called NuMit LLC. As part of the agreement, Mitsui will contribute 100 percent of Steel Technologies Inc., (STI) Louisville, Ky., into NuMit; Nucor will acquire a 50 percent interest in NuMit. Mitsui intends to invest the proceeds of the transaction to expand NuMit.

"Mitsui's announcement marks the next chapter in our growth and commitment to the North American steel industry," says Masaaki Fujita, president and CEO of Mitsui & Co. 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 STI, which operates 23 flat rolled steel processing facilities throughout the United States, Canada and Mexico.

Through the joint venture, Mitsui says it will enhance its position as one of the market leaders in the North American steel processing industry. As a first step, STI will assume responsibility for Nucor's earlier-announced plans to build a 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.

The management structure will allow Nucor to continue its supply chain relationships with other sheet processing companies, while allowing STI the ability to independently manage its supply needs.

Dan DiMicco, Nucor's CEO and chairman, notes, "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 that 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."