Nucor buys utility pole maker

Steelmaker Nucor Corp. says it has entered into an agreement to acquire West Hazleton, Pennsylvania-based Summit Utility Structures LLC and its related company, Sovereign Steel Manufacturing LLC, producers of metal poles and other steel structures for utility infrastructure and highway signage.

The Charlotte, North Carolina-based owner of scrap-fed steel mills and dozens of scrap yards says the two companies will become part of a new business unit, Nucor Towers & Structures, serving the utility, transportation and telecommunication sectors.

Summit and Sovereign currently focus on markets in the northeastern United States, but Nucor says its plan is to establish a nationwide footprint able to service customers throughout North America.

“These acquisitions continue to position Nucor as the leader in steel and downstream steel products as part of our strategy to “Grow the Core, Expand Beyond and Live Our Culture,’’ says Leon Topalian, president and CEO of Nucor.

“These businesses fit well into the Expand Beyond part of our strategy to acquire companies who have a direct connection to our industry, offer significant growth opportunities and enhance Nucor's position as the leading manufacturing company in the metals industry,” Topalian adds. “We intend to grow these businesses to become the preferred solutions provider for utility transmission towers, substations, telecommunication towers and highway signage structures.”

Nucor says the market for utility infrastructure has been historically stable and is expected to enter a phase of accelerated growth because of the replacement of aging infrastructure, growth and migration of population, a focus on increasing electric grid reliability, and an increased penetration of renewable energy and energy storage.

Additionally, says the firm, the transition to 5G and the increased consumption of wireless data supports a market trends for telecommunication tower expansion. The highway signage market is also continuing to see strength and is expected to benefit as departments of transportation begin to implement the recently signed federal infrastructure bill, adds Nucor.

“The markets for transmission and telecommunication towers are forecast to experience strong growth for decades,” says Chad Utermark, an executive vice president with Nucor. “The creation of Nucor Towers & Structures strongly complements our plate capabilities while also adding a new dimension to our arsenal of value-added downstream products such as joists and deck, hollow structural section tubes, metal buildings, insulated metal panels, racking systems, piling and foundation solutions, and shortly, overhead doors.”