Nucor to Acquire Independence Tube
Nucor Corp. agreed to acquire Independence Tube Corp. (ITC), an independent manufacturer of hollow structural section (HSS) steel tubing, for $435 million. ITC operates four strategically located state-of-the-art facilities in Illinois and Alabama that annually produce approximately 600,000 tons. ITC purchases hot-rolled coil from suppliers to produce its HSS steel tubing. The company's manufacturing plants are located in close proximity to Nucor's sheet mills in Decatur, Ala.; Crawfordsville, Ind.; and Ghent, Ky. HSS is used in structural and mechanical applications including nonresidential construction, infrastructure, and agricultural and construction equipment end-use markets.
The acquisition will allow Nucor to offer a wider selection of products to its fabricator and service-center customers and strengthens its presence in the nonresidential construction market. In addition, Nucor is installing a large-diameter tube mill at an existing facility in Iuka, Miss. Adding large-diameter HSS to ITC’s product line will expand its product offerings for HSS solutions in North America.
In other news, Nucor announced that it is adding an additional cold mill at its Nucor Steel Arkansas division. The specialty cold-mill complex will expand Nucor's capability to produce advanced high-strength, high-strength low-alloy, and motor lamination steel products. The mill, which will cost approximately $230 million to build and create around 100 new jobs, is expected to be operational in two years. Locating the cold mill at Nucor's sheet mill in Arkansas will give the company a transportation advantage over competitors outside the region currently supplying the local market and the growing Mexican market.