Steelmaker Nucor Corp. has entered into an agreement with Japan-based steel products manufacturer Mitsui & Co. Ltd. to form a new company called NuMit LLC, Nucor said March 2.
Under the agreement, each company will indirectly own a 50% interest in the newly created company, which will invest in various steel and steel-related activities in North America and globally.
NuMit's first investment will be acquiring all the assets Mitsui currently holds in Steel Technologies Inc.
Steel Technologies operates 23 sheet processing facilities throughout the United States, Canada and Mexico. It will continue to operate as an independent unit with the existing management team maintaining responsibility for the business.
The structure will allow Nucor to maintain supply chain relationships with other sheet processing companies, while allowing Steel Technologies the ability to independently manage its supply needs, the company said.
Steel Technologies will carry out Nucor's previously announced plans to construct a greenfield flat-rolled processing center in Monterrey, Mexico.
The processing center is expected to include pickling, slitting and cut-to-length capabilities to serve customers in Mexico.
