Nucor to Add Cold-Finish Facilities in St. Louis, Mexico
By Metal Center News Staff
on Aug 16, 2017
Nucor Corp., Charlotte, N.C., has reached an agreement with St. Louis Cold Drawn Inc. to acquire the Missouri-based manufacturer of cold-finished steel bar products.
The acquisition includes St. Louis Cold Drawn’s two cold-finish manufacturing facilities in St. Louis and Monterrey, Mexico. The two locations have a combined annual capacity of 200,000 tons of cold-drawn rounds, hexagons, squares and special sections that mainly serve the U.S. and Mexican industrial and automotive markets.
Nucor Chairman and CEO John Ferriola said the acquisition complements Nucor’s long-range strategy to grow its value-added product portfolio.
"This acquisition fits with our planned growth strategy by expanding Nucor's position as the market leader in cold-finished bar products,” Ferriola said. “It also creates synergies with our bar mills by providing an additional channel to market for the special bar quality products we produce."
By adding the St. Louis and Monterrey facilities, Nucor expects the total capacity of its cold-finished bar and wire facilities to jump to more than 1.1 million tons annually. The company also hopes that the acquisition will help boost its automotive sales.