Nucor Corp. has completed its $770 million purchase of all the equity of Gallatin Steel Co., which has a mill on the Ohio River that will receive direct reduced iron produced at Nucor’s plant in Louisiana.
The mill’s location expands Nucor’s footprint in the Midwest market, which is the largest flat-rolled consuming region in the U.S, and gives the company access to all the key markets on the U.S. river system, officials said.
The mill also complements Nucor’s raw materials strategy with its ability to receive direct reduced iron from Nucor’s plant near Convent.
“The timing of the closing is beneficial as it enables us to capitalize on synergies between the two companies during the current contract negotiation season for raw materials, alloy and consumables and steel sales.”said John Ferriola, Chairman, CEO and President of Nucor Corporation.
Nucor Steel Gallatin has an annual capacity of about 1.8 million tons, increasing Nucor’s total flat-rolled production to about 13 million tons annually. The acquisition strengthens Nucor’s position serving flat-rolled customers in the growing pipe and tube segment.