Nucor to Acquire Cold Finish Facilities in Missouri and Mexico
CHARLOTTE, N.C., Aug. 10, 2017 /PRNewswire/ -- Nucor Corporation (NYSE: NUE) announced today that it has agreed to acquire St. Louis Cold Drawn, Inc., a manufacturer of cold drawn rounds, hexagons, squares, and special sections that mainly serve the U.S. and Mexican automotive and industrial markets.
"This acquisition fits with our planned growth strategy by expanding Nucor's position as the market leader in cold finished bar products. It also creates synergies with our bar mills by providing an additional channel to market for the special bar quality (SBQ) products we produce," said John Ferriola, Chairman, CEO and President, Nucor Corporation. "The acquisition of St. Louis Cold Drawn complements our long-term strategy to profitably grow our value-added product portfolio."
St. Louis Cold Drawn, Inc. employs 125 people and has two manufacturing locations, one in St. Louis, Missouri, and the other in Monterrey, Mexico, that have a combined annual capacity of 200,000 tons. The addition of these facilities will increase the total capacity of Nucor's cold finished bar and wire facilities to more than 1.1 million tons annually and helps advance our goal of growing our sales to automotive customers.
Nucor and its 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; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; 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 nonferrous 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," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (3) market demand for steel products; and (4) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2016 Annual Report on Form 10-K, Item 1A. Risk Factors. 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.
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SOURCE Nucor Corporation