Steel Mills
Cargill Sells Metals Business to Metal One
Written by Tim Triplett
September 11, 2017
Japan-based Metal One Corp. has agreed to acquire Cargill’s U.S. metals business. The two companies expect to close the sale later this year.
The agreement includes Cargill’s U.S. metals supply chain business, which includes commercial activities based in Minneapolis and Houston, as well as eight processing facilities in seven U.S. cities: Windsor, Colo.; Panama City, Fla.; Granite City, Ill. (two facilities); East Chicago, Ind.; Tulsa, Okla.; Loudon, Tenn.; and Houston. Metal One will establish a wholly-owned subsidiary in the U.S. to manage the new business.
Currently, Metal One has extensive capabilities in steel distribution throughout the U.S. The acquisition will enable Metal One to expand and diversify its operations by adding a proven business to the company’s growing portfolio, the company said.
“This acquisition will be a great strategic fit with our current asset base in North America,” said Shuichi Iwata, president and CEO of Metal One. “We will provide continuous support for the excellent customer and supplier relationships that Cargill has established in the U.S. metals market, and we look forward to leveraging the acquired business to further enhance our presence in the U.S.”
“We are pleased to find a strategic buyer in Metal One, which has a focus in the ferrous industry and an intent to grow and expand in North America,” said David Dines, president of Cargill Metals & Shipping. “While no longer owning steel processing centers, Cargill will continue to be active in global ferrous markets, offering tailored physical supply and financial solutions in iron ore and steel through our business in the Asia Pacific region.”
Cargill Risk Management will continue to provide hedging products in metals markets.
Tim Triplett
Read more from Tim TriplettLatest in Steel Mills
SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant
ArcelorMittal’s EAF in Alabama expects first heat in Q2
The facility at AMNS Calvert will be the first EAF in North America capable of supplying exposed automotive grades with domestically melted and poured material.
Nucor’s Topalian lauds Trump’s trade policies, downplays impact
Nucor’s top exec Leon Topalian said the benefit of the current administration’s aggressive trade policies “trumps” any risk of potentially higher raw materials prices.
SSAB reports higher production, shipments
But profits slipped vs. last year.
Nucor earnings slump in first quarter, but better times seen ahead
Nucor’s profits fell precipitously in the first quarter, but the company has a rosier outlook for the following quarter.