U.S., Canadian Steel-Making Industry Continues Consolidation with an Eye Toward Growth

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Researched by Industrial Info Resources (Sugar Land, Texas)--The North American steel mill sector is in a state of flux. Globalization, consolidation, mergers and acquisitions, as well as announcements of major grassroot and capacity-expansion projects, have dominated the news lately, providing a continual change to the ownership landscape of the North American steel industry. Most of North America’s integrated steel mill capacity and a good portion of the mini-mill capacity have changed hands since the turn of the century. All of the Canadian steel producers have changed ownership or are in the process of changing ownership.

In 2007, a flurry of acquisitions and major project announcements has occurred. Most recently, United States Steel Corporation (NYSE:X ) (Pittsburgh, Pennsylvania) agreed to acquire Stelco Incorporated (Hamilton, Ontario) for $1.1 billion. Stelco produces 3.7 million tons a year from two integrated steel mills in Ontario. This year, U.S. Steel acquired Lone Star Technologies, making U. S. Steel the largest steel-tubular-product manufacturer in North America. Steel tubing and pipe demand is rising because of an increase in oil and gas pipeline, and energy-related construction activity in North America. This has resulted in a record number of steel pipe mill construction projects being developed in the U.S.

Also in Canada this year, ArcelorMittal (Luxembourg) acquired Dofasco Incorporated (Hamilton, Ontario), and Essar Group (Mumbai, India) acquired Algoma Steel Incorporated (Sault Sainte Marie, Ontario) for $1.74 billion. Essar also purchased the Minnesota Steel project, a $1.6 billion integrated iron ore mine and steel mill complex — the first of its kind in North America — planned in Minnesota. Minnesota Steel is awaiting an air-quality permit to proceed with construction. This project is one of several grassroot and capacity-expansion projects being evaluated across the country. SeverCorr recently began melt-shop operations after a relatively short two-year construction period at a new $750 million steel mill in Columbus, Mississippi. After the lead of SeverCorr, several companies, including Essar, are involved with plans for grassroot steel-mill construction in the United States. ThyssenKrupp, Magnitogorsk Iron & Steel Works and JSW Steel Limited are a few of the foreign steel makers — mainly firms based in Europe, Asia and South America — looking to increase North American market share and to build grassroot steel mills in the U.S. ThyssenKrupp’s project is the most advanced, with plans to begin construction in late 2007 on a $3.7 billion steel mill to make automotive sheet north of Mobile, Alabama.

Other steel firms involved in major North American growth initiatives include Nucor, Gerdau, CMC and Steel Dynamics. Nucor continues its mini-mill leadership role with a slew of major projects scheduled to begin construction in 2007 and 2008. Gerdau Ameristeel continues to acquire North American market share by acquiring Chaparral Steel, which has mills in Texas and the Carolinas.

U.S. and Canada Steel Making Industry Wall Map

In order to keep clients abreast of the many changes occuring in the steel making industry, Industrial Info has released a new U.S. & Canada Steel Making Industry Wall Map, displaying the locations of the steel-making industry in three main categories: 24 metallurgical coke plants representing approximately 22.5 million tons per year of capacity, 23 integrated steel mills with 69.2 million tons per year capacity and 117 mini-mills with about 90 million tons per year of capacity. The map also shows the locations of 12 mills and plants under development. The companies represented on the map are planning more than 270 major steel mill projects, representing total investment value of more than $16 billion for major capital and maintenance projects in North America.

Click on the link above to purchase the map today and receive free 2nd day UPS shipping, or contact Industrial Info's Member Center at 1-800-762-3361 for details.

Industrial Info Resources (IIR) provides marketing communication services ranging from industrial database solutions to market forecasting, custom analytics, and specialty promotions that support high-level image campaigns.