Nucor Acquires Major Scrap Supplier
In a move similar to other steelmakers seeking to lock up sources of raw materials, Nucor Corp., Charlotte, N.C., has acquired a leading scrap supplier, the David J. Joseph Co., for approximately $1.44 billion.

David J. Joseph Co. will be a wholly owned subsidiary of Nucor and maintain its headquarters in Cincinnati.

“We are extremely excited to announce the acquisition of a company that has been our partner in growth for the last 38 years,” says Dan DiMicco, chairman and CEO of Nucor. “With its considerable scale and excellent management team, DJJ offers Nucor a large platform for continued growth in this segment of the industry.”

The existing management team at DJJ, led by Keith Glass, will remain in place. 

The acquisition of the David J. Joseph Co. will bring a variety of benefits to Nucor, company officials say. In addition to DJJ’s scrap processing operations and expertise, its extensive brokerage operations provide Nucor with global sourcing of many key steelmaking raw materials. DJJ’s rail services and logistics capabilities will allow Nucor to leverage the largest private railcar fleet in North America dedicated to scrap transportation. The industrial scrap programs of DJJ also will provide improved channels of raw materials to Nucor.

This acquisition broadens Nucor’s raw materials strategy further into the scrap sector. The addition of the David J. Joseph Co. to Nucor’s current scrap processing capabilities will allow the company to process approximately four million tons of ferrous scrap annually.

The David J. Joseph Co. was founded in 1885 and has been the broker of ferrous scrap to Nucor since 1969. Currently the company has five main businesses—Brokerage Services, Scrap Processing, Mill and Industrial Services, Rail Services and Self Service Auto Parts. In 2007, the company brokered over 20 million tons of ferrous scrap and over 500 million pounds of non-ferrous materials.

The company will process over 3.5 million tons of ferrous scrap in 2008 utilizing 12 shredders in 35 yards. DJJ also owns over 2,000 scrap-related railcars and provides complete fleet management and logistics services to third parties.

The company’s combined revenue totaled $6.4 billion in 2007. 

In a similar billion-dollar transaction, Steel Dynamics Inc., Fort Wayne, Ind., acquired scrap processor OmniSource Corp. last October.

United Spiral Pipe to Open California Facility in 2009
United Spiral Pipe LLC, a joint venture of United States Steel Corp., POSCO and SeAH Steel Corp., has broken ground on a spiral welded pipe manufacturing facility in Pittsburg, Calif. The plant is expected to come on line in May 2009.

The new plant will have world-class pipe making and coating facilities and be capable of producing 300,000 net tons of API specification line pipe per year in outside diameters ranging from 24 to 64 inches. The facility will also benefit from an advanced and automated two-step welding process that will differentiate United Spiral Pipe from its competitors, the companies claim.

“North America is experiencing strong demand for spiral welded pipe due to a number of construction projects for new natural gas and oil transmission infrastructure,” says John P. Surma, chairman and CEO of U.S. Steel. “Both the capacity and location of the spiral welded facility will favorably position the joint venture to build a presence in the rapidly growing North American large-diameter line pipe market.”

Surma was joined at the groundbreaking ceremony by executives from POSCO, SeAH, local and Korean officials and M.S. Lee, who will serve as president of United Spiral Pipe.

U.S. Steel and POSCO each own 35 percent of the joint venture. They have been partners in USS-POSCO Industries in Pittsburg, Calif., for more than 20 years. The new spiral welded pipe facility is located on land owned by UPI. SeAH Steel Corp., a manufacturer of tubular products in the Republic of Korea, will own the remaining 30 percent of the joint venture and brings broad expertise in manufacturing spiral welded pipe to the new company.

Kaiser Adds $14 Million to Investment Plans
Kaiser Aluminum Corp., Foothill Ranch, Calif., has announced plans to enhance and expand extrusion capabilities at its Tulsa, Okla., and Sherman, Texas, facilities. Kaiser will also undertake upgrades to the casting complex at its Trentwood facility in Spokane, Wash., as part of the additional $14 million in investments.

Altogether, Kaiser has committed $244 million in capital expenditures as part of its organic growth program.

The investments expand capabilities at Tulsa to produce automotive extrusions. Teaming with the company’s London, Ont., extrusion facility, Tulsa will provide additional capacity to meet growing customer commitments for automotive applications. Demand for automotive applications has been driven by fuel price pressure and new regulations, such as stricter CAFE standards now mandating a 40 percent improvement in fleet-wide fuel efficiency by 2020.

Equipment upgrades at Sherman will expand capabilities to produce Kaiser Select products. The upgrades will also increase efficiency and capacity at the facility, which produces extruded products for ground transportation and industrial applications.

“We’re continuing to aggressively pursue attractive growth and efficiency opportunities in our businesses,” says Jack A. Hockema, chairman, president and CEO of Kaiser Aluminum. “These additions to our organic growth program will allow us to further serve the growing needs of our customers and continue to improve our quality, efficiencies and costs.”

The investment at the Trentwood facility will significantly improve energy efficiency in its casting process, reducing natural gas consumption per pound cast. The improvements will incorporate a modern furnace and combustion system design, utilizing environmentally friendly and energy-efficient regenerative burners and allowing for reduced material waste.

“This is the second casting unit at Trentwood to be upgraded in a strategic move toward a highly-efficient, future-state casting operation,” says Hockema. “The investment complements our ongoing $139 million heat-treat plate expansion at Trentwood.”

Samuel Manu-Tech Buys Omega Joists
Samuel Manu-Tech Inc., Toronto, has acquired the assets of Omega Joists Inc., a supplier of open web steel joists used primarily in the commercial and industrial building products industry in Western Canada.

Omega was founded in 1985 and has manufacturing operations based in Nisku, Alberta, and sales offices in Surrey, B.C., Calgary, Alberta, and Winnipeg, Manitoba. Omega’s annual sales exceeded $24 million in its most recently completed fiscal year.

“We are excited to welcome Omega Joists, their management and employees to our group of metal processing companies,” says Samuel’s Chairman and CEO Mark Samuel. “We consider this to be a great fit with our roll-form operations, allowing us to package the sale of open web steel joists with our existing deck, siding and other building products.”

This $27 million acquisition complements Samuel’s existing roll-forming capability at its Roll Form Group operations in Edmonton, Alberta; Mississauga, Scarborough and Cambridge, Ontario; and in Iuka, Miss.

Growth Prompts Management Changes at U.S. Steel
United States Steel Corp., Pittsburgh, has announced a sweeping series of management changes at its headquarters and other operations in the United States and Europe, reflecting the company’s growing position as an international steel supplier.

“Since late 2000, U.S. Steel has acquired 18.9 million net tons of raw steelmaking capability in the United States, Canada, Slovakia and Serbia, as well as additional iron-ore mining assets, coke-making facilities, and flat-rolled and tubular finishing operations,” say John Surma, U.S. Steel chairman and CEO. “While we regularly review our management structure to ensure efficiency, we believe the time has come to make significant changes that will allow us to better focus our efforts in key areas and capitalize on market and operating synergies—both realized and projected—made possible by our growth.”

David H. Lohr will return to U.S. Steel’s Pittsburgh headquarters from Europe to fill the new position of senior vice president-North American flat-roll operations. George F. Babcoke will succeed Lohr as senior vice president-European operations and president-U.S. Steel Kosice, and will relocate to Slovakia. Both will report to Executive Vice President John H. Goodish.

Lohr will direct the newly divided executive oversight of the company’s North American flat-rolled steelmaking operations. Anthony R. Bridge has been named vice president-operations, East, and Michael S. Williams has been elected vice president-operations, Midwest. Lohr will also oversee two other areas: supply chain management and flat-rolled sales. John C. Price has been appointed vice president-supply chain, and J. James Kutka Jr., who currently serves as senior vice president-commercial, will fill the redefined role of senior vice president-sales and customer service.

As vice president-operations, East, Bridge will be responsible for directing operations at Great Lakes Works in Ecorse and River Rouge, Mich.; Mon Valley Works, which includes the Clairton plant, the Edgar Thomson plant and the Irvin plant near Pittsburgh, as well as the Fairless plant outside Philadelphia; and U.S. Steel Canada, which includes Hamilton Works in Hamilton, Ont., and Lake Erie Works in Nanticoke, Ont. He will remain in Pittsburgh.

As vice president-operations, Midwest, Williams will oversee operations at Gary Works, which includes the East Chicago tin plant in East Chicago, Ind., and the Midwest plant in Portage, Ind.; Granite City Works in Granite City, Ill.; and Fairfield Works’ flat-rolled operation. He will also be responsible for Minnesota Ore Operations, the company’s iron ore mining and pelletizing facilities in Mt. Iron, Minn., (Minntac) and Keewatin, Minn., (Keetac).

In addition, Richard M. Efkeman was named vice president-worldwide marketing; Anton Lukac was named vice president-engineering and technology; and Thomas Kelly was named general manager-blast furnace engineering and technology.

At U.S. Steel’s Gary Works facility, new appointments include: Frederick G. Jauss, general manager; Ralph Corrente, plant manager-primary operations; and David L. Armstrong, plant manager-Midwest plant. 

David J. Rintoul was appointed general manager of Great Lakes Works in Ecorse and River Rouge, Mich., replacing Jauss. Sharon K. Owen was appointed general manager of Granite City Works in Illinois, replacing Rintoul.  

At Mon Valley Works, Lisa A. Roudabush was appointed general manager and Mark G. Tabler was named plant manager-Clairton plant.

John J. Connelly, the company’s senior vice president of strategic planning and business development, retired at the end of February. 

Mexico’s Grupo Simec
Acquires Grupo San
Guadalajara, Mexico-based Grupo Simec, the main subsidiary of Industrias CH, has agreed to acquire Grupo San, a long-products steel minimill and the second-largest corrugated rebar producer in Mexico, in a transaction valued at $850 million. Grupo San’s operations are based in San Luis Potosi, producing 700,000 tons of finished product annually.

With this acquisition, ICH and Simec position themselves as the second-largest producer of rebar and the largest steel producer in Mexico, with a production capacity of approximately 4.5 million tons of liquid steel and 3.8 million tons of finished products.

ICH and Simec will achieve a more diversified product and sales mix, with 50 percent of sales in Mexico and 50 percent outside Mexico, both of which will allow them to better address the natural cycles of the steel industry at the domestic and global levels, company officials say. Additionally, Grupo San’s central location in Mexico, near major cities, seaports and borders, gives ICH and Simec a new competitive advantage.

Grupo San has aggressive expansion plans in its corrugated rebar business, which ICH and Simec will support and promote to satisfy the growing demand for this product resulting from the Mexican government’s aggressive infrastructure plan, add company officials.

ThyssenKrupp Stainless Orders Equipment for New Facility
ThyssenKrupp Stainless USA LLC has placed an order for an annealing and pickling line for hot-rolled coils at its planned facility in Calvert, Ala. Additional orders have also been placed for an annealing and pickling line for cold-rolled coils, three cold-rolling mills and a skin pass mill.

The line for hot-rolled coils is designed for an annual capacity of 750,000 tons. Its main purpose will be to process hot-rolled material for the production of cold-rolled strip. The coils coming from the hot annealing and pickling line will be further processed in the three cold-rolling mills.

All three mills are of the Sendzimir type and are designed to provide the complete range of products required by the market. The total capacity of the three mills is scheduled for 400,000 tons.

The cold-annealing and pickling line will produce an annual volume of up to 500,000 tons. A skin pass mill is integrated in this line. This mill ensures a high-quality stainless steel surface finish.

The Alabama mill, which will also produce  carbon steel, is expected to begin operations in 2010.

Timken Completes
Boring Specialties Purchase
The Timken Company, Canton, Ohio, has completed its acquisition of Houston-based Boring Specialties Inc., a provider of precision deep-hole oil and gas drilling and extraction products and service. The business will operate as Timken Boring Specialties LLC.

“We are continuing to make strategic investments in our steel capabilities to bring more value to customers in targeted markets, contributing to Timken’s profitable growth,” says Salvatore J. Miraglia, president of Timken’s Steel Group. “The addition of Timken Boring Specialties to our portfolio is the latest in a series of investments to extend our differentiation in the marketplace.”

The latest addition to Timken’s steel portfolio, Timken Boring Specialties creates a simplified and cost-effective supply chain by providing a single-point material and machining source for original equipment manufacturers and distributors. Customers will benefit from the combination of high-quality steel and value-added machining expertise for drilling, skiving, trepanning and honing operations, officials say.

Briefs
AK Steel, West Chester, Ohio, announced a $30 per ton mid-February increase on spot market prices for its carbon steel products. The price increase was in response to increased demand for carbon steel, as well as the need to recover higher costs for steelmaking inputs, according to AK Steel officials.

Material handling company Magnetek, Menomonee Falls, Wis., has acquired the assets of Enrange LLC, Canonsburg, Pa. Enrange is a wireless control manufacturer providing radio controls for the material handling, industrial, hydraulic and rock mining industries.

ArcelorMittal has upgraded its multiyear contract with GlobalEnglish Corp., a provider of online learning and support for business English communication. Improving employees’ skills in English—the company’s official language—became a strategic imperative to ensure a successful integration of the two organizations after the merger of Arcelor and Mittal.

AMG Resources, Pittsburgh, has acquired Cleveland-based Midwest Steel & Alloy, a scrap metal processing company. Midwest Steel & Alloy operates a processing facility in Youngstown, Ohio, and a commercial office in Yorkville, Ill.

Votorantim Metais, Rio de Janeiro, Brazil, has chosen Morgan Construction Co., Worcester, Mass., to supply a single strand wire rod mill. The project design allows for future expansion to two strands for rod production of up to one million tons per year. 

UC Rusal has launched the Alscon aluminum smelter in Nigeria, with modernization plans that will increase capacity to 197,000 tons annually. The investment is estimated to cost $300 million.

Columbus, Ohio-based Worthington Steelpac, a Worthington Industries company, plans to begin mass producing the Steelpac Distribution Pallet in March. It’s the first lightweight, flame-resistant steel pallet designed to meet Grocery Manufacturers Association capacity and compatibility standards, Worthington claims.

Alcoa Inc., Pittsburgh, is partnering with Aluminum Corp. of China to acquire 12 percent of the UK common stock of Rio Tinto plc. Alcoa will contribute up to $1.2 billion to the total investment.

U.S. Steel-Serbia has started up its No. 2 blast furnace after completing an extensive rebuild, including a fully hydraulic gun and drill designed and built by Woodings Industrial Corp. The new gun and drill provide the steelmaker with completely automated plugging and tapping. 

Interseroh, a German-based raw materials trading group, has exercised an option to acquire a 25 percent share of ProTrade Group LLC, a Hudson, Ohio-based steel recycling and scrap trading company. 

Trageder Corp., Richmond, Va., will sell its aluminum extrusions operations in Canada for $25 million to WXP Holdings Inc., an affiliate of H.I.G. Capital. The deal is expected to close later this month.

People
Ian Thompson will lead the new operations team at Niles Expanded Metals & Plastics, Niles, Ohio. Thompson had been director of operations and new product development at The Expanded Metals Co. of England. Also, Carol Ferguson will assume responsibility for all production, shipping and receiving operations while Mike DeSavigny and Mark Egley will supervise the engineering and maintenance departments.

The London Metal Exchange has appointed Liz Milan as director, commercial department, and Craig Hewett as deputy director. They will head up a new department combining all LME marketing and commercial activities.

Craig Davis has resigned as chairman of the board of Century Aluminum Co., Monterey, Calif. The board has elected John O’Brien, a current director, to succeed Davis as chairman.

New aluminum billet company Alexin, Bluffton, Ind., has appointed two aluminum industry veterans to vice president positions. Neil Johnson has been named vice president of sales and materials and Jay Jarrett is the vice president of finance.

Alcoa Director of Investor Relations Tony R. Thene has been elected vice president and controller of the Pittsburgh-based company. Greg Aschman, who had been finance director for Alcoa’s Building and Constructions Systems business, will replace him. Also, Alcoa appointed Stan O’Neal, former chairman and CEO of Merrill Lynch, and Michael G. Morris, chairman, president and CEO of American Electric Power Co., to its board of directors. 

PRIMA North America, Champlin, Minn., has appointed Peter G. Thompson to the position of technical director for Laserdyne Systems. His responsibilities include advanced process development and technical support for Laserdyne customers worldwide.

Mark A. Ohlund, vice president of technology services for Rochester, Pa.-based PLS Logistics Services, has been named CIO of the Year by the Pittsburgh Technology Council and the Greater Pittsburgh CIO Group.  The award honors innovation and creativity among chief information officers in industry, academia and government.