Nucor to Form Joint Venture With Mitsui

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Mar 02, 2010, 11:59 ET

CHARLOTTE, N.C., March 2 /PRNewswire-FirstCall/ -- Nucor Corporation (NYSE: NUE) announced today that it has entered into an agreement with Mitsui & Co. (U.S.A.), Inc. ("Mitsui"), a wholly owned subsidiary of Mitsui & Co., Ltd., wherein each would indirectly own a 50% interest in a newly created company, NuMit LLC. NuMit will invest in various steel and steel related activities, both in North America and globally. Coinciding with the formation of NuMit will be its first investment, Steel Technologies LLC, which will own all of the assets, operations and business currently held by Mitsui in Steel Technologies, Inc. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.

Steel Technologies operates 23 sheet processing facilities throughout the U.S., Canada and Mexico. It will continue to operate as an independent unit with the existing management team maintaining responsibility for the performance of the business. This management structure will allow Nucor to continue its long-standing supply chain relationships with other sheet processing companies while at the same time allowing Steel Technologies the ability to independently manage its supply needs. Nucor's focus will remain on providing the most efficient supply chain solutions for all of its customers.

Nucor's previously announced plans to construct a greenfield flat rolled processing center in Monterrey, Mexico will be implemented by Steel Technologies LLC. The processing center is expected to include pickling, slitting and cut-to-length capabilities to serve customers in Mexico.

Dan DiMicco, Nucor's CEO and Chairman, noted, "We are very excited about forming the NuMit venture with Mitsui. For several years, Nucor has stressed the importance of finding the right partners to grow with internationally. Mitsui fits that criteria and will complement Nucor's other growth efforts. The excellence of both companies, Mitsui's global market experience and Nucor's operational and technological expertise will allow us to seize opportunities that may not otherwise exist."

Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and non ferrous scrap. Nucor is North America's largest recycler.

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe", "expect", "will", "should" and other similar expressions are intended to identify those forward-looking statements. Factors that might cause actual results to differ materially from those anticipated in these forward-looking statements include but are not limited to: (1) the sensitivity of the results of operations to prevailing steel prices; (2) market demand for processed sheet steel; (3) energy costs and availability; and (4) timing of capital investments. These and other factors are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2009 Annual Report on Form 10-K. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.

SOURCE Nucor Corporation