Tokyo Steel and Mitsui Corp Sell TAMCo’s Share to Gerdau

Tokyo Steel Manufacturing and Mitsui Corporation decided to sell shares of TAMCO, a rebar maker in California, USA, to Gerdau Amristeel, a US steel maker. Tokyo Steel and Mitsui concluded a share transfer contract with Gerdau on September 15. Each of Tokyo Steel and Mitsui Crop holds 25% in TAMCO’s total shares. The rest 50% is held by Ameron International Corporation of USA. Gerdau acquires TAMCO’s entire share from the three companies at US$ 165 million. The 3 companies decided the share transfer when rebar demand has shrunk in western USA while Gerdau operates a rebar processing base in the region.

TAMCO operates a rebar plant with annual output capacity at 500,000 tonnes in California, which is the largest rebar maker in western USA. Tokyo Steel had previously imported billet from TAMCO till 10 years ago. Mitsui Corp had sent directors to control TAMCO’s management plan.

TAMCO is suffered from weak rebar demand after financial crisis in 2008. The demand is likely to maintain low level for a long time.

Gerdau Johannpeter, president and CEO of Gerdau S.A, said TAMCO contributes to Gerdau’s mini-mill network in North America, increasing Gerdau’s geographical footprint into the western USA and capability to serve the civil construction market in the region. Gerdau S.A is the largest maker of long products in Americas and one of the largest special steel bar maker in the world. The group capacity is 25 million tonnes per year.