Steel Mills
Nucor Closes $400M Deal for Majority Stake in CSI
Written by Michael Cowden
February 3, 2022
Nucor has closed its $400 million deal for a majority stake in California Steel Industries (CSI).
“We are excited to officially welcome our CSI teammates to the broader Nucor family,” said Rex Query, Nucor’s Executive Vice President of Sheet and Tubular Products.
“This joint venture gives us a strong presence in the Western region and grows our ability to produce an even wider range of value-added sheet products for our modern economy,” he said in statement.
The Charlotte, N.C.-based steelmaker announced in December that it was buying Brazilian iron ore miner Vale’s 50% stake in CSI and 1% of Japanese steelmaker’s JFE interest. The result: Nucor will hold a controlling interest of 51% in the Fontana, Calif., slab converter and JFE a 49% stake.
Nucor had said that it expected the deal to close in the first quarter.
CSI has annual capacity of approximately two million tons. It makes hot-rolled, pickled-and-oiled, cold-rolled and galvanized sheet as well as electric resistance welded (ERW) pipe. Its primary markets are construction, service centers and energy, Nucor said.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
Nippon’s Mori meets with Pa. Gov. Shapiro: Report
Nori, a top Nippon Steel official, met on Tuesday with Pennsylvania's governor, to discuss its proposed acquisition of U.S. Steel.
Nippon won’t import slabs to US if U.S. Steel deal goes through
Nippon Steel has affirmed that if its $14.9-billion bid for U.S. Steel proves successful, the Japanese steelmaker will not import overseas-produced slabs to the US.
AISI: Raw steel production falls to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.