Thursday, 04 Mar 2010

Mitsui & Co Limited has announced that its wholly owned subsidiary Mitsui & Co (USA) Inc has entered into a definitive agreement with Nucor Corporation to own and operate a flat rolled steel processing network and other steel related projects throughout North America.

Mitsui USA will contribute Steel Technologies Inc, a wholly owned subsidiary of Mitsui USA, into a newly established holding company, to be named NuMit LLC. Then 50% of the interest in NuMit will be sold to Nucor.

Steel Tech will serve as the foundation for NuMit, and will enhance its flat rolled steel processing operations in North America. Together with Mitsui’s global steel market experience and Nucor’s manufacturing and technological strength, NuMit will expand its business domain to other steel related projects throughout the world. Mitsui intends to invest the proceeds from the transaction into further NuMit investments. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.

Mitsui has owned Steel Tech since 2007 through Mitsui USA. Steel Tech operates 23 service center facilities throughout the US, Canada and Mexico. Mitsui will endeavor to expand its position as one of the market leaders in the North American steel processing industry by combining Nucor's competitiveness as a steel maker and Mitsui’s global steel market experience. As a first step, Steel Tech will open a new Greenfield flat rolled processing facility in Mexico, where steel demand is increasing remarkably due to entrance of manufacturers from all over the world.

Steel processing facilities under NuMit, as an independent operating unit, will purchase steel from a variety of suppliers, continue ongoing stable relationships with them, and will provide unsurpassed services with wide variety of processing and quality needs.