Steel Technologies to Buy Calstrip

Steel Technologies, Louisville, Ky., has agreed to purchase the assets of Calstrip Industries, Inc., expanding Steel Technologies’ North American steel processing platform to 31 facilities, including joint-venture operations, located throughout the United States, Canada and Mexico. The transaction is expected to close late this month.

slitting Calstrip – a flat-rolled processor with operations in California, New Mexico, Texas and Arkansas – has developed a strong business model focused on contract business with complex supply-chain and inventory management for just-in-time deliveries. It offers flat-rolled low-carbon and high-carbon steel, stainless steel, galvanized, pre-painted and aluminum for such end markets as appliance, electrical lighting, construction, HVAC and automotive.

“Calstrip Industries has a strong reputation for excellent quality and customer service, and we are excited to add those assets and teammates to Steel Technologies,” President and CEO Thad Solomon said. “This acquisition supports our dynamic growth strategy by deepening our ability to serve key customers in the Southwest and northern Mexico markets. I am looking forward to welcoming our new teammates from Calstrip to the Steel Tech family.”

“Our team at Calstrip Industries has always regarded Steel Technologies as a best-in-class organization, and we are excited about the opportunities this combination will provide for our valued customers and employees,” added Calstrip CEO J.P. Nelis.

Steel Technologies is owned by NuMit LLC, which is a 50-50 joint venture between steelmaker Nucor Corp. and Japan’s Mitsui & Co. (U.S.A.), Inc. Steel Technologies was ranked No. 9 in this year’s Metal Center News Service Center Top 50 with projected 2021 revenues of approximately $3 billion.

By Tim Triplett, Tim@SteelMarketUpdate.com