Nucor To Buy Corporacion POK, Expand Footprint In Mexico
Zacks Investment Research | Nov 29, 2018 08:41PM ET
Nucor Corporation (NYSE:NUE) is purchasing Corporacion POK, S.A. de C.V., a Mexico-based fully-integrated precision castings company. POK manufactures complex castings and precision machined products that are used in the oil and gas, mining as well as sugar processing industries.
POK makes a vast range of precision castings using steel, bronze, iron and specialty exotic alloys and currently employs 425 people at its Guadalajara, Mexico production facility.
According to Nucor, the buyout supports its strategy in Mexico, which is focused on downstream processing for value-added, high-quality applications targeting niche markets. Expansion of capability for producing value-added products is a major component of the company’s strategy for long-term profitable growth.
POK will complement Nucor's acquisition of a cold finish facility in Monterrey in 2017. The acquisition will enable the company to extend current product offerings. It will also provide the opportunity to boost sales in existing and new markets.
Nucor's existing Mexican operations include several sheet steel processing facilities that are part of the Steel Technologies joint venture (JV) with Mitsui & Co. and a steel sales office along with the Nucor ATP Mexico cold finish facility in Monterrey. Moreover, Nucor is constructing a galvanizing line with its JV partner, JFE Steel Corporation, to serve the Mexican automotive market.
Shares of Nucor have lost 6.4% in the past six months compared with the
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.