Nucor to Acquire Majority Ownership in California Steel Industries

SEATTLE (Scrap Monster): Nucor Corporation announced that it has reached agreements to acquire majority ownership stake in California Steel Industries, Inc (CSI). As per the agreements, Nucor will purchase 50% equity interest in CSI from a subsidiary of Vale S.A. and a 1% equity ownership stake from JFE Steel Corporation. The transaction is subject to necessary regulatory approvals.

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Further to this, CSI will be operated as a joint venture between Nucor and JFE. The completion of the acquisition will result in Nucor’s second joint venture project with JFE. Earlier, the two companies had entered into a joint venture in operating an automotive steel plant in Mexico, which is estimated to have a production capacity of 400,000 tons of galvanized steel, mainly for the automotive industry.

Commenting on the acquisition deal, Leon Topalian, President & Chief Executive Officer of Nucor Corporation said that the acquisition of majority ownership stake in California Steel Industries will expand the company’s geographic reach in sheet steel, in addition to giving it a strong presence on the West Coast. The acquisition will boost its portfolio of value-added sheet products. Furthermore, it will provide opportunities for increased internal shipments, he added.