Nucor Acquires Steel-Tubing Producer as Anti-Dumping Measures Boost Steelmakers

Researched by Industrial Info Resources (Sugar Land, Texas)--Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina), one of the largest U.S.-based steel producers, announced yesterday that it will acquire Independence Tube Corporation (Chicago, Illinois) for $435 million. Independence Tube manufactures hollow structural section (HSS) steel tubing, which is used in agricultural, construction and infrastructure-related equipment. Industrial Info is tracking more than $623 million in active projects from Nucor.

According to Bloomberg Markets, Nucor is among the domestic steelmakers benefiting after the U.S. handed down anti-dumping measures on imports, including those from China. The move has boosted capacity utilization at the steelmakers' facilities. For further information, see August 1, 2016, article - U.S. Steel Producers Show Improved Results.

Nucor said in a statement that it and Independence Tube are "highly complementary," noting that Nucor is at work on a $15 million expansion of its Skyline Steel facility in Iuka, Mississippi. The plant, which produces spiral welded steel pipe, will install a large-diameter tube mill and new equipment to boost production of straight-seam, electric-resistance welded pipe. The project is in its early engineering phase and is expected to be completed by the end of first-quarter 2017. For more information, see Industrial Info's project report.

Industrial Info is tracking all four of Independence Tube's plants, which produce about 600,000 tons annually and employ roughly 335 people. For details, including contact information, see Industrial Info's plant reports for the facilities in Decatur, Alabama; Trinity, Alabama; Chicago, Illinois; and Marseilles, Illinois.

Nucor noted that Independence Tube's plants are within hours of Nucor's facilities in Decatur, Alabama; Trinity, Alabama; Crawfordsville, Indiana; and Ghent, Kentucky. Industrial Info is tracking two capital projects at the Trinity facility: the $11 million addition of electric-arc furnace equipment, which is under construction, and the $4.4 million addition of pickle line equipment. Nucor hopes to enhance its 2.4 million-ton-per-year, flat-rolled steel minimill by improving the pickle line, which will help a broader range of products to reach the automotive, manufacturing and other markets, and four furnace shells, two tilt platforms and other equipment to the furnace. For more information, see Industrial Info's project reports on the electric-arc furnace and pickle line additions.

At Nucor's facility in Ghent, Kentucky, Industrial Info is tracking the $10 million direct-reduced iron handling system. The addition will allow the 4.8 million-ton-per-year plant to receive direct-reduced iron (DRI) from Nucor's DRI Plant in St. James Parish, Louisiana. For more information, see Industrial Info's project report.

"Independence Tube is a natural fit with Nucor," said John Ferriola, the chairman, chief executive officer and president of Nucor, in a statement. "Their business model is similar to ours, with extremely efficient manufacturing facilities and a highly variable cost structure. ... This acquisition is another important step in our long-term strategy to increase the number of value-added products we can offer our customers. It also adds to our portfolio another growth platform for our team to use to grow our company."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.