Steel Mills

Nucor Closes $400M Deal for Majority Stake in CSI

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.

Nucor “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

Michael Cowden is managing editor for Steel Market Update. Cowden has covered the steel industry since 2007. He has since 2014 specialized in flat-rolled steel but has previously reported on steel long products, steel pipe and tube as well as aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago - where he was involved in launching AMM's daily hot-rolled coil index, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.