Milwaukee-based Joy Global Inc. will sell its steel plate mill in Longview, Texas to Nucor Corp. for approximately $29 million, the company announced Wednesday.
Nucor is the largest steel producer in the United States and the mill will continue to supply Joy Global with heavy steel plates used to manufacture some of Joy’s mining equipment.
“This offers great opportunities for the mill employees,” said Rodney Bull, vice president and general manager for Joy Global in Longview. “We look forward to a strong working partnership with Nucor as both companies drive for growth in our respective markets.”
Local employees were informed directly about the agreement to sell, and the sale is expected to close within 60 days.
Joy and other mining equipment manufacturers have struggled in recent years as falling coal prices and production and a slowdown in the Chinese economy have limited demand for their products. The challenges were featured in a recent BizTimes cover story.
To manage through the downturn, Joy is focusing on delivering profitable growth to its core mining equipment and services business while also monetizing non-core assets.
The company continues to have manufacturing and support functions located in Longview for its surface, underground and hard rock mining equipment lines.