Nucor to set up joint venture with Italyís Duferco
CHARLOTTE (AP) ó Nucor Corp. said Tuesday it is forming a joint venture with Italyís Duferco S.A. to produce steel beams that will be sold in Europe and North Africa.
The Charlotte-based steel maker and scrap metal recycler said it will pay about $658 million for a 50 percent stake in the new venture, Duferdofin-Nucor S.r.l. The purchase price values the new venture at 6.3 times adjusted earnings before interest, tax, depreciation and amortization.
The beams will be made in Italy. The new venture will rely on Dufercoís long-product production lines and the Italian steel makerís existing distribution companies.
Nucor produced about three million tons of beams in North America last year. Three existing Italian plants ó in San Zeno, Pallanzeno and Giamorro ó will be part of the new venture, and they produced a combined 900,000 metric tons in 2007. One metric ton contains about 2,205 pounds.
The deal is expected to close in the third quarter, subject to regulatory approval.
Shares of Nucor fell 3 cents to $81.31 in morning trading.
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