Nucor Corporation (NYSE: NUE) announced today that it has entered into an agreement to acquire Summit Utility Structures LLC and related company, Sovereign Steel Manufacturing LLC, producers of metal poles and other steel structures for utility infrastructure and highway signage. These companies will become part of a new business unit, Nucor Towers & Structures, serving the utility, transportation and telecommunication sectors. While the acquired companies are ideally suited to service the markets in the Northeast part of the U.S., Nucor's plan is to establish a nationwide footprint able to service all customers throughout North America.
These acquisitions continue to position Nucor as the leader in steel and downstream steel products as part of our strategy to Grow the Core, Expand Beyond and Live Our Culture. These businesses fit well into the Expand Beyond part of our strategy to acquire companies who have a direct connection to our industry, offer significant growth opportunities and enhance Nucor's position as the leading manufacturing company in the metals industry, We intend to grow these businesses to become the preferred solutions provider for utility transmission towers, substations, telecommunication towers and highway signage structures."
Leon Topalian, President and Chief Executive Officer of Nucor Corporation.
The market for utility infrastructure has been historically stable and is expected to enter a phase of accelerated growth due to the replacement of aging infrastructure, growth and migration of population, a focus on increasing electric grid reliability, and an increased penetration of renewable energy and energy storage. Additionally, the transition to 5G and the increased consumption of wireless data support strong market trends for telecommunication towers. The highway signage market is also continuing to see strength and is expected to benefit as departments of transportation begin to implement the recently signed federal infrastructure bill.
These acquisitions create a new growth platform for our company to provide engineered solutions for utility infrastructure and construction projects. The markets for transmission and telecommunication towers are forecast to experience strong growth for decades, The creation of Nucor Towers & Structures strongly complements our plate capabilities while also adding a new dimension to our arsenal of value-added downstream products such as joists and deck, hollow structural section tubes, metal buildings, insulated metal panels, racking systems, piling and foundation solutions, and shortly, overhead doors."
Chad Utermark, Executive Vice President of New Markets and Innovation.
About Nucor
Nucor and its affiliates are manufacturers of steel and steel products, with operating facilities in the United States, Canada and Mexico. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; steel grating; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.