Nucor has closed its $400 million deal for a majority stake in California Steel Industries (CSI).
“We are excited to officially welcome our CSI teammates to the broader Nucor family,” said Rex Query, Nucor’s Executive Vice President of Sheet and Tubular Products.
“This joint venture gives us a strong presence in the Western region and grows our ability to produce an even wider range of value-added sheet products for our modern economy,” he said in statement.
The Charlotte, N.C.-based steelmaker announced in December that it was buying Brazilian iron ore miner Vale’s 50% stake in CSI and 1% of Japanese steelmaker’s JFE interest. The result: Nucor will hold a controlling interest of 51% in the Fontana, Calif., slab converter and JFE a 49% stake.
Nucor had said that it expected the deal to close in the first quarter.
CSI has annual capacity of approximately two million tons. It makes hot-rolled, pickled-and-oiled, cold-rolled and galvanized sheet as well as electric resistance welded (ERW) pipe. Its primary markets are construction, service centers and energy, Nucor said.
By Michael Cowden, Michael@SteelMarketUpdate.com
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