Houston-based Quanex Corp. finalized its purchase of North Star Steel’s Monroe, MI, SBQ mini-mill on December 31. The transaction is listed at $115 million, financed by borrowing against an existing credit line.
The new addition will be called Macsteel Monroe, the third plant Quanex’s Macsteel chain. It is seen complementing the larger product sizes produced at the other plants in Jackason, MI, and Fort Smith, AR.
Macsteel now boasts a total capacity of 500,000 tons/year, in special bar quality and engineered bar grades. Monroe has capability for alloy ranges, in bars ranging in diameter from 0.5625 to 3.25 in. Most of its products are shipped to the light- and heavy-duty truck markets.
According to Quanex chairman and CEO Raymond A. Jean, "The acquisition of Monroe directly supports and benefits our core Macsteel business and enhances our efforts to provide Quanex's vehicular customers with a broader range of high-quality bar products."
Monroe's production of smaller-diameter bars would complement Macsteel's 1- to 6-inch size range and expand its customer base and product offerings, he said.