Steel Mills
Nucor Closes $400M Deal for Majority Stake in CSI
Written by Michael Cowden
February 3, 2022
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
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
ArcelorMittal plans wire-drawing closure in Hamilton, shifts production to Montreal
ArcelorMittal’s (AM) Hamilton location to be shuttered, wire production shifting to Montreal.
USS, Nippon Steel quiet as litigation deadline approaches
There has been little word from U.S. Steel, Nippon Steel, or the White House since President Trump endorsed the companies’ “partnership” on social media and celebrated it at the May 30 rally outside Pittsburgh.
AISI: April mill shipments fall, sheet down YTD
US steel mills saw a decline in shipments from March to April.
Hybar rolls first rebar, ramping up Arkansas mill commissioning
The startup steelmaker produced its first rebar at its greenfield steel mill in Osceola, Ark., marking a key milestone by completing construction in 22 months.
Goncalves: Despite higher tariffs, two Cliffs mills to remain idled
Cleveland-Cliffs Chairman, President, and CEO Lourenco Goncalves said he would keep one mill idled and still plans to idle another despite increased protections from Section 232 tariffs doubling to 50%.