US steel producer Nucor is leaving its Italian joint venture with Doferdofin, part of Duferco, 12 years from its creation, Kallanish learns from Duferco.
The parties have come to an amicable agreement that will see Duferco buying Nucor’s 50% share of Duferdofin, becoming the sole shareholder of the company. Duferco has confirmed the €180 million ($212m) investment in the new section rolling mill at Duferdofin’s plant in San Zeno Naviglio, near Brescia.
Financial closing is scheduled for the first days of December, after the go-ahead from the European anti-trust authority, Duferco reveals in a note.
Nucor saw its profits drop to just one-tenth of their prior-year levels in Q1 this year, primarily due to issues with its Italian joint venture. The drop was largely due to a one-time impairment charge of $250m “…related to our equity method investment in Duferdofin Nucor,” the company said in its Q1 financial statement (see Kallanish 28 April).
The plant on San Zeno Naviglio has a capacity of the 1 million tonne/year.
