CHARLOTTE, N.C.,
April 1,
2024 /PRNewswire/ -- Nucor Corporation (NYSE: NUE)
announced today that it has acquired Southwest Data Products, Inc.
(SWDP), a manufacturer and installer of data center infrastructure
for $115 million. SWDP's offices and
manufacturing facility are in San
Bernardino, California and the company employs approximately
147 teammates. Nucor is also announcing the launch of Nucor
Data Systems, a new business unit that will help better serve our
customers in the data center infrastructure industry.
"We are excited to add SWDP and new teammates to our Nucor
family of companies. This acquisition will give us new capabilities
to serve a rapidly growing market and will bolster Nucor as a
preferred supplier to many of the nation's largest and most
innovative hyperscale cloud and colocation data center operators,"
said Chad Utermark, Executive Vice
President of New Markets and Innovation. "The SWDP acquisition
furthers our expand beyond strategy to invest in steel centric
businesses that operate outside of the cyclical nature of steel
production."
Specifically, SWDP and Nucor Data Systems will provide Nucor's
Warehouse Systems businesses with expanded capabilities in airflow
containment structures, as well as new product capabilities that
include manufacturing cabinets/enclosures and caging for data
centers and installation services. SWDP's compatibility with Nucor
Warehouse Systems' current manufacturing capabilities will create
significant growth opportunities, and SWDP's location near Nucor
Warehouse Systems' production facility in southern California will facilitate both integration
and growth efforts.
This acquisition also creates a number of synergies with Nucor's
core steelmaking business. SWDP uses many types of steel as raw
material that can be provided by Nucor facilities, including sheet
steel, steel tubing and wire mesh. With our circular,
recycling-based steel production process, sourcing steel from Nucor
mills will ensure our nation's green and digital economy is being
built with low embodied carbon steel.
SWDP has a strong reputation for high quality products, fast
lead times, and quality installation services. The company has an
exceptional customer base of leading companies requiring data
centers. Growth in data centers is being fueled by the increasing
use of artificial intelligence, cloud-based services and video
streaming across a growing number of applications.
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; overhead
doors; steel grating; wire and wire mesh; and utility structures.
Nucor, through The David J. Joseph Company and its affiliates, 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.
Forward-Looking Statements
Certain statements
contained in this news release are "forward-looking statements"
that involve risks and uncertainties which we expect will or may
occur in the future and may impact our business, financial
condition and results of operations. The words "anticipate,"
"believe," "expect," "intend," "project," "may," "will," "should,"
"could" and similar expressions are intended to identify those
forward-looking statements. These forward-looking statements
reflect the Company's best judgment based on current information,
and, although we base these statements on circumstances that we
believe to be reasonable when made, there can be no assurance that
future events will not affect the accuracy of such forward-looking
information. As such, the forward-looking statements are not
guarantees of future performance, and actual results may vary
materially from the projected results and expectations discussed in
this news release. Factors that might cause the Company's actual
results to differ materially from those anticipated in
forward-looking statements include, but are not limited to: (1)
competitive pressure on sales and pricing, including pressure from
imports and substitute materials; (2) U.S. and foreign trade
policies affecting steel imports or exports; (3) the sensitivity of
the results of our operations to general market conditions, and in
particular, prevailing market steel prices and changes in the
supply and cost of raw materials, including pig iron, iron ore and
scrap steel; (4) the availability and cost of electricity and
natural gas, which could negatively affect our cost of steel
production or result in a delay or cancellation of existing or
future drilling within our natural gas drilling programs; (5)
critical equipment failures and business interruptions; (6) market
demand for steel products, which, in the case of many of our
products, is driven by the level of nonresidential construction
activity in the United States; (7)
impairment in the recorded value of inventory, equity investments,
fixed assets, goodwill or other long-lived assets; (8)
uncertainties and volatility surrounding the global economy,
including excess world capacity for steel production, inflation and
interest rate changes; (9) fluctuations in currency conversion
rates; (10) significant changes in laws or government regulations
affecting environmental compliance, including legislation and
regulations that result in greater regulation of greenhouse gas
emissions that could increase our energy costs, capital
expenditures and operating costs or cause one or more of our
permits to be revoked or make it more difficult to obtain permit
modifications; (11) the cyclical nature of the steel industry; (12)
capital investments and their impact on our performance; (13) our
safety performance; (14) our ability to integrate businesses we
acquire; and (15) the impact of the COVID-19 pandemic, any variants
of the virus, and any other similar pandemic or public health
situation. These and other factors are discussed in Nucor's
regulatory filings with the United States Securities and Exchange
Commission, including those in "Item 1A. Risk Factors" of Nucor's
Annual Report on Form 10-K for the year ended December 31, 2023. The forward-looking statements
contained in this news release speak only as of this date, and
Nucor does not assume any obligation to update them, except as may
be required by applicable law.
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SOURCE Nucor Corporation