Mitsui & Co., Ltd. ("Mitsui") announced today that Mitsui & Co. (U.S.A.), Inc, ("Mitsui USA"), a wholly owned subsidiary of Mitsui has entered into a definitive agreement with Nucor Corporation ("Nucor") to own and operate a flat rolled steel processing network and other steel related projects throughout North America.
Mitsui USA will contribute Steel Technologies Inc. ("Steel Tech"), a wholly owned subsidiary of Mitsui USA, into a newly established holding company, to be named NuMit LLC ("NuMit"). Then 50% of the interest in NuMit will be sold to Nucor. Steel Tech will serve as the foundation for NuMit, and will enhance its flat rolled steel processing operations in North America. Together with Mitsui's global steel market experience and Nucor's manufacturing and technological strength, NuMit will expand its business domain to other steel related projects throughout the world. Mitsui intends to invest the proceeds from the transaction into further Numit investments. Closing of the transaction will occur after satisfactory resolution of regulatory approvals and other closing conditions.
Mitsui has owned Steel Tech since 2007 through Mitsui USA. Steel Tech operates 23 service center facilities throughout the U.S., Canada and Mexico. Mitsui will endeavor to expand its position as one of the market leaders in the North American steel processing industry by combining Nucor's competitiveness as a steel maker and Mitsui's global steel market experience. As a first step, Steel Tech will open a new greenfield flat rolled processing facility in Mexico, where steel demand is increasing remarkably due to entrance of manufacturers from all over the world.
Steel processing facilities under NuMit, as an independent operating unit, will purchase steel from a variety of suppliers, continue ongoing stable relationships with them, and will provide unsurpassed services with wide variety of processing and quality needs.
This press release includes forward-looking statements about Mitsui. These forward-looking statements are based on the current assumptions and beliefs of Mitsui in light of the information currently available to it, and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, performance, achievements or financial position to be materially different from any future results, performance, achievements or financial position expressed or implied by these forward-looking statements. The risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest annual report on Form 20-F, which has been filed with the U.S. Securities and Exchange Commission.
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