Mitsui & Co. (U.S.A.), Inc. ("Mitsui"), a wholly owned subsidiary of Mitsui & Co., Ltd., today announced that it entered into a definitive agreement with Nucor Corporation ("Nucor") to jointly form a new partnership that will serve as a platform to establish steel related projects both in North America as well as globally.
Mitsui and Nucor will each indirectly hold a 50% share in the new company to be named NuMit LLC ("NuMit"). As part of the agreement, Mitsui will contribute 100% of Louisville, Kentucky-based Steel Technologies Inc. ("Steel Technologies") into NuMit, and then Nucor will acquire a 50% interest in NuMit. Mitsui intends to invest the proceeds of the transaction to further expand NuMit. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.
"Mitsui's announcement today marks the next chapter in our growth and commitment to the North American steel industry," commented Mr. Masaaki Fujita, President and CEO of Mitsui & Co. (U.S.A.), Inc. "Supported by Mitsui's global steel expertise and Nucor's manufacturing capabilities, NuMit will play an important role in implementing our North American and global business strategies and enhancing our upstream/downstream value chain. Through NuMit we will broaden and deepen our penetration in existing markets, while exploring expansion and growth opportunities through new business initiatives."
NuMit will own 100% of the assets of Steel Technologies, of which Mitsui has been the sole shareholder since 2007. Steel Technologies operates 23 flat rolled steel processing facilities throughout the U.S., Canada and Mexico.
Steel Technologies will serve as the foundation for the newly established NuMit, and will remain as an independent operating unit with the current management team maintaining responsibility for the company's performance. Steel Technologies will maintain its independent platform to best serve its customers with the most efficient supply chain. This independence will allow Steel Technologies to continue providing unsurpassed service, quality, logistics and value to the North American market place.
Through the joint venture, Mitsui will endeavor to enhance its position as one of the market leaders in the North American steel processing industry. As a first step, Steel Technologies will assume responsibility for Nucor's previously announced plans to open a new greenfield flat rolled processing center in Monterrey, Mexico. The operation will install slitting and CTL capabilities, with the possible addition of pickling in the future, to serve the growing market demand in the region.