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Nucor Acquires Precision Castings Company in Mexico

NUE

PR Newswire

CHARLOTTE, N.C., Nov. 29, 2018 /PRNewswire/ -- Nucor Corporation (NYSE:NUE) announced today that it is acquiring Corporacion POK, S.A. de C.V. (POK), a fully integrated precision castings company with a facility in Guadalajara, Mexico. POK produces complex castings and precision machined products used by the oil and gas, mining and sugar processing industries.

"Our company has had a presence in Mexico for more than a decade. We know the market and the customers there. This acquisition supports Nucor's strategy in Mexico, which is focused on downstream processing for high-quality, value-added applications targeting niche markets," said John Ferriola, Chairman, CEO and President of Nucor Corporation. "Expanding our capability to produce value-added products is a key component of our strategy for long-term profitable growth."

POK produces a wide array of precision castings using steel, bronze, iron and specialty exotic alloys. Founded in 1894, POK has a long operating history and strong management team, which is a natural fit for Nucor's existing cold finish businesses and complements Nucor's acquisition of a cold finish facility in Monterrey last year. The acquisition of POK will enable Nucor to broaden its current product offerings and gives the company the opportunity to increase sales into new and existing markets. POK currently employs 425 people at its Guadalajara production facility.

In addition to the Nucor ATP Mexico cold finish facility in Monterrey, Nucor's current Mexican operations include several sheet steel processing facilities as part of its Steel Technologies joint venture with Mitsui & Co., as well as a steel sales office. Nucor is also building a galvanizing line with its joint venture partner, JFE Steel Corporation of Japan, to serve the Mexican automotive market. 

Nucor and its affiliates are manufacturers of steel and 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; hollow structural section tubing; electrical conduit; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/ DRI iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

Certain statements contained in this news release are "forward-looking statements" that involve risks and uncertainties. The words "believe," "expect," "project," "will," "should," "could" and similar expressions are intended to identify those forward-looking statements. Factors that might cause the Company's actual results to differ materially from those anticipated in forward-looking statements include, but are not limited to: (1) competitive pressure on sales and pricing, including competition from imports and substitute materials; (2) U.S. and foreign trade policies affecting steel imports or exports; (3) the sensitivity of the results of our operations to prevailing steel prices and the changes in the supply and cost of raw materials, including scrap steel; (4) market demand for steel products; and (5) energy costs and availability. These and other factors are discussed in Nucor's regulatory filings with the Securities and Exchange Commission, including those in Nucor's fiscal 2017 Annual Report on Form 10-K, Item 1A. Risk Factors. 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.

Cision View original content:http://www.prnewswire.com/news-releases/nucor-acquires-precision-castings-company-in-mexico-300757093.html

SOURCE Nucor Corporation

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