Nucor signs memorandum of understanding for joint venture with Duferco
Nucor Corp. has announced that is has signed a Memorandum of Understanding with the Duferco Group (Lugano, Switzerland) to establish a 50/50 joint venture to produce beams in Italy and distribute beams in Europe and North Africa. The two parties will immediately begin the tasks necessary in order to establish the joint venture company by mid 2008. The joint venture will encompass the Duferco Group's Duferdofin subsidiary and associated distribution companies.
Final agreement to establish the joint venture company is dependent on completion of appropriate due diligence, approval of appropriate regulatory bodies, and approval of the Boards of Directors of both companies.
According to Nucor's release, the Duferco Group's wholly owned subsidiary, Duferdofin, is the leader in beam production in Italy and South Europe. Production of beams and other long products from Duferdofin's plants in San Zeno, Pallanzeno and Giamorro exceeded 900,000 MT in 2007. A new merchant bar mill is under construction in Giamorro and is expected to be operational in the fall of 2008. Additional investments in the Italian operations are under review by the two companies.