Worthington Global Group targets emerging international markets for
residential construction
JV will drive first substantial
light gauge steel-framed construction in burgeoning provinces
COLUMBUS, Ohio, Jan 04, 2011 (BUSINESS WIRE) --
Reflecting its focus on identifying growth opportunities for housing in
China, Worthington Industries, Inc. (NYSE: WOR) announced today the
creation of a joint venture to manufacture light gauge steel framing
products and to design, engineer and supply light gauge steel-framed
mid-rise residential buildings in five Central Chinese provinces.
Worthington joins with Hubei Modern Urban Construction & Development
Group Co., Ltd. (HMUCG) of China in the 40/60 joint venture, which will
be known as Worthington Modern Steel Framing System Co., Ltd.
The China joint venture is an initiative of the Worthington Global
Group, created recently to leverage Worthington's capabilities in
markets with growth opportunities, particularly where governments seek
to develop housing for their growing middle class populations. The joint
venture will operate in the Chinese provinces of Hubei, Hunan, Henan,
Jiangxi and Anhui, which have a combined population of approximately 300
million.
"This joint venture is a great example of our global strategy for our
mid-rise system as we introduce steel framing to new markets. We have
identified several attractive and developing worldwide markets with
strong demographics that have the potential to provide a magnitude of
scale," Worthington Industries Chairman and CEO John McConnell said.
"Our global strategy provides an opportunity to enhance the demand for
light gauge steel-framed residential structures and allows us to
leverage our core competencies in metals manufacturing, and in design
and engineered building products.
"We have invested resources in China over the past five years to pursue
this market, and those efforts are starting to pay off," McConnell said.
"Our Shanghai design office has been engaged in trial steel-framed
mid-rise buildings for several months with the Ministry of Construction
as China focuses on national building codes that promote steel framing."
McConnell also said that the Worthington Global Group has been working
on a large-scale project in Mozambique, Africa, underway since September
2010. The project involves the construction of up to 26 residential
buildings using Worthington's steel framing system on the campus of the
All-Africa Games, scheduled for September 2011. These buildings will
have a total of 900,000 square feet which will require nearly 4,000 tons
of steel. The majority of the studs and stairs are being exported from
Worthington's U.S. operations. "This project provides the opportunity
for us to show the attributes of our steel framing system in an
international setting. Our design and building methods can deliver this
type of project in a much shorter time frame than traditional building
methods," said McConnell.
The China joint venture, will also supply curtain wall and interior
framing solutions for commercial buildings and operate out of a facility
being constructed in the city of Xintao, near Wuhan, in the Hubei
province. Xintao is considered one of eight "Ring Cities" and is the
site of the Sino-Canada High-Technology Industrial development. This
development is a joint effort of the Balloch Group of Canada and HMUCG.
It will serve as a catalyst for the demand of steel-framed products.
Wuhan, the primary city in the Hubei region, is the target of
significant development efforts by the Chinese government under its
"Rise of Central China Program," which includes a focus on developing
second-tier cities.
About Hubei Modern Urban Construction & Development Group (HMUCG)
Established in2003, HMUCG is a construction and real-estate
development firm with strong commercial ties based in the Hubei
province. In conjunction with the Balloch Group of Canada, HMUCG is
developing the Modern Sino-Canada Science and Technology center in one
of the eight ring cities of Wuhan. This sizeable development is expected
to provide significant demand for the Worthington Modern Steel Framing
System Joint Venture.
About Worthington Global Group
Worthington Global Group operates with a business platform that includes
high density mid-rise residential construction in emerging international
markets. It is led by Ralph Roberts, a Worthington veteran of more than
30 years. The Global Group is leveraging the expertise gained from the
construction of more than 10 million square feet of mid-rise buildings
over the last six years in the U.S. using W-IBS (Worthington Integrated
Building System), a highly engineered steel framing system.
Corporate Profile
Worthington Industries is a leading diversified metals manufacturing
company with 2010 fiscal year sales of approximately $1.9 billion. The
Columbus, Ohio based company is North America's premier value-added
steel processor and a leader in manufactured pressure cylinders, such as
propane, oxygen and helium tanks, hand torches, refrigerant and
industrial tanks, camping cylinders, alternative fuel storage, and scuba
tanks; light gauge steel framing for commercial and residential
construction; framing systems and stairs for mid-rise buildings; current
and past model automotive service stampings; metal ceiling grid systems;
steel pallets and racks; and through joint ventures, suspension grid
systems for concealed and lay-in panel ceilings, and laser welded
blanks. Worthington employs approximately 6,500 people and operates 65
facilities in 11 countries.
Founded in 1955, the Company operates under a long-standing corporate
philosophy rooted in the golden rule. Earning money for its shareholders
is the first corporate goal. This philosophy serves as an unwavering
commitment to the customer, supplier, and shareholder, and it serves as
the Company's foundation for one of the strongest employee-employer
partnerships in American industry.
Safe Harbor Statement
The Company wishes to take advantage of the Safe Harbor provisions
included in the Private Securities Litigation Reform Act of 1995 (the
"Act"). Statements by the Company relating to the expected benefits of
the joint venture including the expectations for expansion and growth;
the potential for acceptance, demand and growth of the Company's
building system, and of steel framed products; and other non-historical
matters constitute "forward looking statements" within the meaning of
the Act. Because they are based on beliefs, estimates and assumptions,
forward-looking statements are inherently subject to risks and
uncertainties that could cause actual results to differ materially from
those projected. Any number of factors could affect actual results,
including, without limitation, those risks described from time to time
in filings with the United States Securities and Exchange Commission.
SOURCE: Worthington Industries, Inc.
Worthington Industries, Inc.
Cathy M. Lyttle, 614-438-3077
VP, Corporate Communications and Investor Relations
E-mail: cmlyttle@WorthingtonIndustries.com
or
Sonya L. Higginbotham, 614-438-7391
Director, Corporate Communications
E-mail: slhiggin@WorthingtonIndustries.com
or
www.WorthingtonIndustries.com