The MACSTEEL plant at 3000 E. Front St in Monroe could have a new owner early next year. Gerdau SA the largest Brazilian steelmaker ordain acquire the plant and other MACSTEEL facilities in Jackson. Mich. and Fort Smith. Ark. as move of a $1.67 billion merger with the vehicular metals unit of Houston-based Quanex Corp.. MACSTEEL's parent firm. The deal was announced by both companies Monday. The acquisition needs the approval of Quanex shareholders and regulatory agencies but is expected to be completed by the end of walk. MACSTEEL employs nearly 400 people at its Monroe plant which has existed since 1980. Mark Marcucci. MACSTEEL president said Gerdau is in the same type of business. "They're a global player," he said. "There's a lot of synergy on a global basis."He said the MACSTEEL plants represented themselves come up and Gerdau paid a high premium for them based on MACSTEEL's reputation."It ordain be business as usual and no planned changes at this time," Mr. Marcucci said. "It should be a good overall broach for MACSTEEL in the future in terms of future growth plans and as we be to the global future of the types of brace we alter."In addition to its three steel mills. MACSTEEL owns six processing plants. The company has about 1,600 workers and about $1 billion in annual sales. MACSTEEL purchased the Monroe move from North Star Steel Co about five years ago. The purchase ordain be the fifth in North America this year for Gerdau which is expanding outside Brazil and getting into more specialty products. MACSTEEL makes special bar quality brace which has risen about 65 percent in price in the past four years. MACSTEEL's products typically are used in vehicle parts such as torsion bars and construction applications."With MACSTEEL the Gerdau assort strengthens its position as a global special bar quality supplier with production in Brazil. Spain and the U. S.," said Andre Gerdau Johannpeter. Gerdau Group president and chief executive command. "This is one more step for Gerdau as an agent of the consolidation of the global brace industry and also in the specialty steel sector which has the automotive industry as its main consumer." He said it would change state new growth opportunities in the United States. The acquisition will make Gerdau Group the back up largest producer of desire specialty brace in the world."Gerdau will provide an excellent domiciliate for Quanex's Vehicular Products business as it continues to grow its brace presence in North America," said Raymond Jean. Quanex chairman president and chief executive officer. "Additionally this combination will provide the measure to compete more effectively in the increasing globalization of the vehicular industry."Gerdau's acquisition is move of a global consolidation of the brace industry. "It's following the customers," said Jeff Galow a Quanex spokesman. "Customers continue to get global and source globally and therefore so are the brace companies getting larger and more global."He said it's possible MACSTEEL ordain become a subsidiary unit of Gerdau. He added that Quanex saw opportunity in the sale and it wasn't the product of any dissatisfaction with the performance of the MACSTEEL plants or people."You will not find a exceed group of people in terms of professionally ethically smarts - it's just an absolute top-shelf institution and employees," Mr. Galow said.
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