Japanese major steel trading firm, Marubeni-Itochu Steel announced on Wednesday the firm and US listed steel dealer and processor, Worthington Industries agreed to merge their light metal frame making units into joint venture. Marubeni-Itochu Steel America pays US$ 175 million in cash to acquire 75% share of the joint venture. MISA sells all assets of MISA Metals, which operates steel service center business for non-automotive industry, to Worthington.Worthington and MISI combine Dietrich Industries, which is US largest light frame maker of Worthington group, and Clark Western Building Systems, which is US second largest frame maker of MISI group. They launch the joint venture as early as in this month. The joint venture has 13 framework and steel construction material plants with annual US$ 600 million and 400,000 tonnes of steel sales. MISI and Worthington decided to combine their units expecting the merger creates synergy. The parents companies expect better technological ability to develop new products. Worthington acquires MISA Metals to expand the core business for construction and home electronics material while MISI focuses on nonresidential building market.
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