Nucor Corporation announced that it has successfully completed its acquisition of a majority ownership position in California Steel Industries, Inc. (CSI) by purchasing a 50% equity interest from a subsidiary of Vale S.A. (Vale) for a cash purchase price of $400 million, adjusted for net debt and working capital at closing, as well as a 1% equity ownership stake from JFE Steel Corporation (JFE).
CSI is a flat-rolled steel converter with the capability to produce more than two million tons of finished steel and steel products annually. The company has five product lines, including hot rolled, pickled and oiled, cold rolled, galvanized and ERW pipe. Key end-use segments served by CSI include customers in the construction, service center and energy industries.
“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.”
Courtesy of Nucor.