As described in earlier posts, Nucor is Limited Diversification firm with Single to Dominant-business setup within the steel industry. Nucor does not currently execute any kind of business activities outside of the steel industry.
That said, Nucor has established strategic alliances within the steel industry. The alliance types are joint ventures, which means that Nucor and the company with which the alliance is formed have created a new independent entity and each of the firms in the alliance own a portion of the new company. In Nucor's case, the joint ventures are 50/50 operations.
The first alliance with Mitsui &Co. created NuMit LLC, which itself owns Steel Technologies LLC. Steel Technologies (
http://www.steeltechnologies.com/Pages/Home.aspx) creates products from Nucor supplied flat-rolled steel that Nucor itself does not produce. Via the alliance, Nucor was able to enter a different finished products market without having to invest in the necessary machinery to craft the products - it was low-cost entry into a new market. This alliance also left Nucor open to continue sales to other sheet processing companies.
The second alliance with Duferdofin was again a low-cost entry into new markets, this time into an overseas market.
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