Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/42776f4ea9c8cb5471c2b26cb851b20b.jpg)
BlueScope Steel to Take 100% Ownership of North Star BlueScope
Written by Sandy Williams
October 27, 2015
Australian steel producer, BlueScope Steel has agreed to acquire Cargill Incorporated’s 50 percent share of North Star BlueScope for $720 million and $40 million in assumed debt, making BlueScope sole owner of the profitable Delta, Ohio mini-mill.
BlueScope exercised its right of last refusal after Cargill was offered a bid for the North Star.
BlueScope Managing Director and CEO Paul O’Malley commented, ““This transaction will give us 100 per cent ownership of an asset that is highly regarded within the U.S. steel sector; full ownership enhances BlueScope’s portfolio value and optionality and improves business flexibility. The North Star business delivers on our strategy of being cost competitive in steelmaking and is best in class.”
“Since FY2005 inclusive, the Company’s 50 per cent ownership interest in North Star has returned over A$1.1 billion of cash dividends,” he added. “This transaction offers a unique opportunity to acquire full ownership of this highly cash generative business,” said
North Star BlueScope, with 380 employees, produces about 2 million tons of hot rolled coil annually and consistently operates at full capacity. BlueScope Steel hopes to further boost North Star’s output by 90,000 tons annually, over the next two years, by increasing casting width and speed.
Sale of North Star BlueScope divests Cargill of its last remaining steel production facility. The company will continue to focus on global trading, distribution and processing of steel mill consumables and products, including iron ore, hot rolled steel coils, steel billets and reinforcing bar (rebar) steel.
Peter Hawthorne, Cargill vice president of Strategy and Business Development and chair of the joint venture’s board of directors, said: “Cargill has been pleased with the performance of the NSBS team in Delta and the financial results of the joint venture. We have chosen to sell our interest in the joint venture to redeploy this capital elsewhere in Cargill’s portfolio and are confident in the team’s continued success under new ownership.”
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/stelco.png)
Steel Summit 2024: Stelco CEO reflects on strategy, growth, and sale to Cleveland-Cliffs
In a candid fireside chat with SMU Senior Analyst/Editor David Schollert, Stelco’s CEO Alan Kestenbaum opened up about Stelco’s pending sale to Cliffs, his business strategy, outlook for the industry, and plans for the future. The chat took place on Tuesday, Aug. 24, at the 2024 SMU Steel Summit in Atlanta.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/AISI.png)
AISI: US steel shipments unchanged in July vs. June, down on-year
Domestic steel shipments remained nearly flat in July month over month but fell from a year earlier.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/white_house.png)
Media reports: Biden could block USS sale on national security concerns
President Joe Biden could block the $15-billion sale of U.S. Steel to Japan's Nippon Steel by citing national security concerns That’s according to reporting in the Washington Post and the Financial Times that was later picked up by the New York Times as well as in wire services.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/US_Steel.png)
USS threatens to cut ‘thousands’ of jobs, move HQ if Nippon sale blocked
U.S. Steel could slash thousands of jobs, shift away from integrated steelmaking, and move its headquarters out of Pittsburgh if its acquisition by Nippon Steel isn’t completed, the company’s top executive said. “We want elected leaders and other key decision makers to recognize the benefits of the deal was well as the unavoidable consequences if the deal fails,” company President and CEO David Burritt said in a statement on Wednesday.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
CRU: SSAB to expand Mobile plate mill
SSAB plans to spend $12 million to boost production capacity at its electric-arc furnace (EAF) plate mill in Mobile, Ala. The Sweden-based steelmaker will do that by expanding the existing furnace there. Shot blast equipment will also be upgraded. The expanded capacity is expected to come online late next year. The mill currently has an […]