CHARLOTTE, N.C., May 14 /PRNewswire-FirstCall/ -- Nucor Corporation announced today the signing of a Memorandum of Understanding with Sidenor S.A. (ATH: SID) to purchase a 34% share of a new joint venture which will be formed for the production and distribution of long steel products and plate in the Balkans, Turkey, Cyprus and North Africa. The contemplated joint venture will include all of the steelmaking and related activities of Sidenor, excluding the activities and assets of Corinth Pipe Works.
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.
Sidenor is the largest producer of steel in Greece with additional steelmaking, rolling and reinforcing mesh operations in Bulgaria and the Former Yugoslavian Republic of Macedonia (FYROM). The main steel plants are located in Thessaloniki and Almyros (Sovel) in Greece, in Pernik, Bulgaria (Stomana Industry) and in Dojran, FYROM (Dojran Steel). In addition, Sidenor operates steel distribution centers throughout the Balkans, either alone or with partners. Total 2007 steel production was nearly two million tons, which is expected to grow significantly in the near future. Sidenor recently began operation of a new rolling mill at its Stomana Industry plant in Bulgaria, which will bring Sidenor's total steel rolling capacity to more than 3.6 million metric tons per year by 2009.
Nucor is the largest producer of steel in North America, with total 2007 steel production of more than 23 million tons. Nucor is recognized as a world leader in the efficient combination of technology and people to provide its customers with the highest quality products and customer service. As part of the contemplated joint venture, Nucor would bring its considerable technical and commercial expertise.
Sarados Milios, CEO of Sidenor, noted: "We are pleased that a company with the reputation and capabilities of Nucor Corporation has agreed to join with Sidenor to further its strategic growth in the rapidly developing markets of southeastern Europe, and we strongly believe that this cooperation will bring many benefits to both companies."
Dan DiMicco, CEO and Chairman of Nucor, noted: "We are very happy to work with Sidenor towards a joint venture that will join and leverage the excellent people and operations of both companies. In our discussions, we have been repeatedly impressed by the cultural compatibility of our two companies. We look forward to the formal establishment of the joint venture and beginning our work together."
Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; light gauge steel framing; steel grating and expanded metal; and wire and wire mesh. 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. Nucor is North America's largest recycler.
Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements are outlined in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's December 31, 2007 Annual Report on Form 10-K. The forward-looking statements contained in this news release speak only as of this date, and Nucor does not assume any obligation to update them.
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