Nucor Corporation’s subsidiary Nucor Steel Kingman has completed the purchase of substantially all of the operating assets of the Kingman, Arizona steel facility of North Star Steel for $35,000,000.
The purchase price did not include working capital and Nucor assumed no material liabilities of the North Star operation.
The Kingman facility has an annual melting capacity of 650,000 tons; however, the melt shop has not operated since January 2000. The rebar and wire rod rolling facility was idled by North Star earlier this month. Rolling capacity exceeds 500,000 tons annually.
‘North Star stopped operating this facility because it could not find a way to make the facility economically viable,’ said Dan DiMicco, Nucor’s Vice Chairman, President and Chief Executive Officer. ‘We will immediately begin discussing issues with state and local authorities, as well as with potential suppliers to find the most effective solution for profitably operating the plant. We have made no decisions on restarting the melt shop and will not begin operations until the proper engineering, financial, operating and state and local tax issues have been settled.’
Nucor is the largest steel producer and the largest recycler in the US.