Steel producer Nucor Corp.’s (NUE) subsidiary, the David J. Joseph Company, has bought Ocala Recycling LLC in line with its strategy to grow its scrap-processing industry and its expansion plans in Florida.
Ocala Recycling, a subsidiary of Blaze Metals LLC, operates four Ocala, FL, facilities. It has an automobile shredder with a total capacity of more than 100,000 tons of scrap metal annually. With the addition of Ocala, David J. Joseph operates a total of 15 automobile shredders throughout its facilities.
Following the Ocala Recycling purchase, David J. Joseph now operates 15 automobile shredders throughout its facilities. David J. Joseph will operate the 22-year-old Ocala recycling facilities as part of Trademark Metals Recycling LLC. Since Nucor acquired David J. Joseph in March 2008, the latter has added approximately 1.1 million tons of scrap processing capacity and 27 locations through five acquisitions. It has also opened two greenfield yards.
Separately, Nucor has also entered into an agreement with Mitsui & Co. (U.S.A.) Inc., a wholly owned subsidiary of Mitsui & Co. Ltd. (MITSY), to form a joint venture NuMit LLC. Both companies will hold an equal stake in the joint venture. NuMit will invest in various steel and steel related activities, both in North America and beyond.
Coinciding with the formation of NuMit will be its first investment, Steel Technologies LLC, which will own all of the assets, operations and business currently held by Mitsui in Steel Technologies, Inc. Steel Technologies operates 23 sheet processing facilities throughout the U.S., Canada and Mexico.
The joint venture will help Nucor grow internationally. Nucor’s previously announced plans to construct a greenfield flat-rolled processing center in Monterrey, Mexico, will be implemented by Steel Technologies LLC. The processing center is expected to include pickling, slitting and cut-to-length capabilities to serve customers in Mexico.
Nucor is North America’s largest steel recycler. The company manufactures steel products, with operating facilities primarily in the U.S. and Canada. 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.
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