Nucor Corp. reached agreements to acquire a majority ownership position in California Steel Industries (CSI) by purchasing a 50% equity interest from a subsidiary of Vale S.A. and a 1% equity ownership stake from JFE Steel Corp. (JFE). The company will be a joint venture between Nucor and JFE. CSI is a flat-rolled steel converter with the capability to produce more than 2 million tons of finished steel and steel products annually. The company has five product lines, including hot rolled, pickled and oiled, cold rolled, galvanized and ERW pipe.
According to Nucor, acquiring a majority ownership stake in Fontana, Calif.-based CSI, which employs more than 800 workers, expands its geographic reach in sheet steel and gives it a strong presence on the West Coast.
When the acquisition is completed, it will be Nucor's second joint venture with JFE. The companies have been operating an automotive-steel joint venture in Mexico since 2020. The facility in Mexico has the capacity to produce 400,000 tons of galvanized steel annually for the automotive industry.