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Sidenor In Strategic Partnership With Nucor Corp

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Sidenor S.A.has signed a Memorandum of Understanding with Nucor Corporation, a leading USA steel producer, according to a relevant announcement.

 

According to the Memorandum, Nucor will acquire a 34% stake in a new subsidiary company of Sidenor, in which all steel producing assets of the VIOHALCO Group will be contributed with the exception of Corinth Pipeworks S.A.


Through this strategic partnership with Nucor, Sidenor will substantially strengthen its competitive position in the global market. The partnership will allow Sidenor to expand its product range, optimize the use of cutting-edge technology, accelerate and consolidate its expansion into the markets of the Balkans, Cyprus, Turkey and Northern Africa.


The agreement is expected to be finalized by this years end, subject to customary due diligence process, necessary approvals by regulatory authorities and execution of the definitive agreements.

Dan DiMicco, CEO and Chairman of the Board of Nucor Corporation, noted:
We are very happy to begin the journey with Sidenor towards a joint venture which will join and leverage the excellent people and operations of both Sidenor and Nucor. In our discussions, we have been repeatedly struck by the cultural compatibility between our two companies. We look forward to moving forward towards the formal establishment of the joint venture and beginning our work together.


Sarados Milios, Sidenors CEO noted: 

We are pleased that a company with the reputation and capabilities of Nucor Corporation, has chosen to join with Sidenor to build its strategic growth in the rapidly developing markets of Southeastern Europe and Northern Africa. We strongly believe that this cooperation will bring multiple benefits to 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 on its own, or through partnerships.. Total 2007 steel production was 2 million tons approx., which is expected to grow significantly in the near future. Sidenor recently began operation of a new rolling mill at its Stomana Industry, Bulgaria plant, which is expected to bring Sidenors total steel rolling capacity to more than 3.6 million metric tons per year by 2009.


Nucor Corporation is one of the largest producers of steel in North America, with 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 serve 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.

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