Mitsui USA to Form Joint Venture with Nucor Corporation
NEW YORK (MARCH 3, 2010) — Mitsui & Co. (U.S.A.), Inc. (“Mitsui”), a wholly owned subsidiary of Mitsui & Co., Ltd., today announced that it entered into a definitive agreement with Nucor Corporation (“Nucor”) to jointly form a new partnership that will serve as a platform to establish steel related projects both in North America as well as globally.
Mitsui and Nucor will each indirectly hold a 50% share in the new company to be named NuMit LLC (“NuMit”). As part of the agreement, Mitsui will contribute 100% of Louisville, Kentucky-based Steel Technologies Inc. (“Steel Technologies”) into NuMit, and then Nucor will acquire a 50% interest in NuMit. Mitsui intends to invest the proceeds of the transaction to further expand NuMit. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.
“Mitsui’s announcement today marks the next chapter in our growth and commitment to the North American steel industry,” commented Mr. Masaaki Fujita, President and CEO of Mitsui & Co. (U.S.A.), Inc. “Supported by Mitsui’s global steel expertise and Nucor’s manufacturing capabilities, NuMit will play an important role in implementing our North American and global business strategies and enhancing our upstream/downstream value chain. Through NuMit we will broaden and deepen our penetration in existing markets, while exploring expansion and growth opportunities through new business initiatives.”
NuMit will own 100% of the assets of Steel Technologies, of which Mitsui has been the sole shareholder since 2007. Steel Technologies operates 23 flat rolled steel processing facilities throughout the U.S., Canada and Mexico.
Steel Technologies will serve as the foundation for the newly established NuMit, and will remain as an independent operating unit with the current management team maintaining responsibility for the company’s performance. Steel Technologies will maintain its independent platform to best serve its customers with the most efficient supply chain. This independence will allow Steel Technologies to continue providing unsurpassed service, quality, logistics and value to the North American market place.
Through the joint venture, Mitsui will endeavor to enhance its position as one of the market leaders in the North American steel processing industry. As a first step, Steel Technologies will assume responsibility for Nucor’s previously announced plans to open a new greenfield flat rolled processing center in Monterrey, Mexico. The operation will install slitting and CTL capabilities, with the possible addition of pickling in the future, to serve the growing market demand in the region.
About Steel Technologies
Steel Technologies Inc., headquartered in Louisville, KY and a wholly owned subsidiary of Mitsui & Co. (U.S.A.), Inc., operates 23 steel processing facilities throughout the U.S., Canada and Mexico. It is a leading steel processor that leverages its broad geographic network of operations to deliver value added products and services to customers in a variety of industries. More information about the Company may be found at www.steeltechnologies.com.
About Nucor Corporation
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel — in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and non ferrous scrap. Nucor is North America’s largest recycler.
About Mitsui & Co. (U.S.A.), Inc.
Mitsui & Co. (U.S.A.), Inc. is the largest wholly owned subsidiary of Mitsui & Co., Ltd., a diversified global investment and service enterprise based in Tokyo, Japan. Mitsui has operations in iron and steel products and materials, infrastructure projects, machinery, information technology, chemicals, plastics and consumer products, among others.
For further information, please contact:
Mitsui & Co. (U.S.A.), Inc.
Public Affairs Center
Mr. Shinichi Hirabayashi
Phone: (212) 878-4072
Note: This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui’s actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui’s latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission. This press release is published in order to publicly announce specific facts stated above, and does not constitute a solicitation of investments or any similar act inside or outside Japan, regarding the shares, bonds or other securities issued by us.