Nucor Corporation announced that it has agreed to acquire St. Louis Cold Drawn, Inc., a manufacturer of cold drawn rounds, hexagons, squares, and special sections that mainly serve the U.S. and Mexican automotive and industrial markets. Financial terms of the operation were not disclosed.
"This acquisition fits with our planned growth strategy by expanding Nucor's position as the market leader in cold finished bar products. It also creates synergies with our bar mills by providing an additional channel to market for the special bar quality (SBQ) products we produce," said John Ferriola, Chairman, CEO and President, Nucor Corporation. "The acquisition of St. Louis Cold Drawn complements our long-term strategy to profitably grow our value-added product portfolio."
St. Louis Cold Drawn, Inc. employs 125 people and has two manufacturing locations, one in St. Louis, Missouri, and the other in Apodaca, Nuevo Leon, that have a combined annual capacity of 200,000 tons. The addition of these facilities will increase the total capacity of Nucor's cold finished bar and wire facilities to more than 1.1 million tons annually and helps advance our goal of growing our sales to automotive customers.
The Apodaca site, opened in 1999, houses a world class drawing operation under the name of Aceros Trefilados de Precision (ATP). This facility covers 50,000 square feet and contains three complete cold drawing lines as well as a turning & polishing (peeling) line.
Since its beginning, ATP has supplied cold finished steel bar requirements for several multi-national corporations with operations throughout Mexico. St. Louis Cold Drawn clalims that ATP has more cold finishing capability and capacity than any other facility in Mexico.
The cold finished steel bars are used in electric motor shafts, shock absorbers & MacPherson struts, bearings, screw machine parts, stabilizer bars among other applications.