Steel Products

Russel Metals Sells TriMark Shares
Written by Becca Moczygemba
August 1, 2023
Canadian metals distributor Russel Metals announced it is selling off 50% of its equity in TriMark Tubulars Ltd. to Japan’s Marubeni-Itochu Tubulars Ltd. (MITI).
The value of the sale is approximately CAD$61 million (US$46 million) and should be finalized in Q3, the company in a press release on July 31.
The two companies merged their respective oil country tubular goods (OCTG) and line pipe businesses in 2021 to create TriMark Tubulars. Under TriMark, Russel was able to convert C$109 million into cash and retain a C$32-million equity interest in the company.
In Q1 of 2023, Russel recorded sequential growth in each of its business categories. Although, year-over-year results were not as strong.
Combined with the dividends from TriMark, the sale of Russel’s interest will give the company a return on investment of over 200%, the company said.
“This transaction represents the final step to our staged exit from the OCTG/line pipe business. Over the past three years, we have repatriated approximately (C)$375 million of capital from the OCTG/line pipe business and have reinvested in our core segments at superior returns with lower risk,” John Reid, president and CEO of Russel Metals, said in the release.
“Additionally, we have retained significant financial flexibility to opportunistically grow our company and return capital to our shareholders,” he added.

Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products

SMU Community Chat replay now available
The latest SMU Community Chat webinar reply is now available on our website to all members. After logging in at steelmarketupdate.com, visit the community tab and look under the “previous webinars” section of the dropdown menu. All past Community Chat webinars are also available under that selection. If you need help accessing the webinar replay, or if your company […]

SSAB announces $74M expansion in Alabama
The project will expand heat treat capacity at its Axis, Alabama plant

Service centers: Mill orders retreat in March
SMU’s Mill Order Index declined in March after repeated gains at the start of the year, according to our latest service center inventories data.

Nucor maintains plate prices
Nucor aims to keep plate prices flat with the opening of its June order book.

US rig count up, Canada declines
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US rig counts expanded for a second straight week, while Canadian activity continued its seasonal slowdown of eight consecutive weeks.