In an effort to strengthen its global sourcing clout, Nucor Corp. has purchased scrap broker David J. Joseph Co. from its parent company SHV North America Corp. for $1.33 billion.
Nucor, which announced the deal on Feb. 8, expects the acquisition will provide the company with access to global sourcing resources such as rail services and logistics capabilities and industrial scrap programs, providing improved raw materials channels.
Nucor has stated in the past its desire to produce 6 million to 7 million tons of high-quality scrap substitutes annually. The purchase of David J. Joseph is part of the companys raw materials strategy.
The addition will increase Nucors scrap processing capabilities to approximately 4 million tons of ferrous scrap annually. David J. Joseph, which employs 1,700 workers, will maintain its headquarters in Cincinnati.