IRVING, Texas, Jan. 10, 2022 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) ("CMC") today announced, as the next
phase of its long-term growth strategy, a plan to construct another
state-of-the-art micro mill geographically situated to primarily
serve the Northeast, Mid-Atlantic, and Mid-Western United States
markets. CMC believes that the location and capabilities of
the planned facility will significantly augment CMC's scale in the
Eastern U.S. and synergistically complement its existing
operational footprint. CMC is currently in the site selection
process and exploring several suitable options.
The new micro mill will be among the most environmentally
friendly steelmaking operations in the world. The technology
to be employed is lower in both energy consumption and greenhouse
gas emissions compared to traditional steelmaking processes.
Barbara R. Smith, Chairman of the
Board, President and Chief Executive Officer, commented "This is an
exciting new investment for CMC and our customers. The new
micro mill will fortify our position in the large construction
markets within the region and optimize CMC's existing Eastern U.S.
operational footprint through enhanced production flexibility,
improved service capabilities, and logistical efficiencies."
Ms. Smith continued, "the recent enactment of the Infrastructure
Investment and Jobs Act should provide an additional tailwind to
what was already an attractive expected return on investment for
the project. We anticipate the legislation will stimulate
substantial incremental demand for construction steel, particularly
in the targeted geographies where core infrastructure is among the
oldest in the U.S."
"CMC was the first in the world to adopt the innovative micro
mill steelmaking process, and today's announcement further
solidifies our position at the forefront of this revolution in long
steel production. Once the project is completed, we expect
that nearly a third of our North American steel output will be
produced in a micro mill, giving CMC the most operationally
efficient and environmentally friendly plant network of any long
steelmaker globally."
Following receipt of state and local incentives, permitting, and
other necessary approvals, the construction of the planned mill is
expected to take roughly two years.
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and fabricate steel and metal products, and provide related
materials and services through a network of facilities that
includes seven electric arc furnace ("EAF") mini mills, two EAF
micro mills, one rerolling mill, steel fabrication and processing
plants, construction-related product warehouses and metal recycling
facilities in the United States
and Poland.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of the federal securities laws with respect to general
economic conditions, key macro-economic drivers that impact our
business, the effects of ongoing trade actions, the effects of
continued pressure on the liquidity of our customers, potential
synergies and organic growth provided by acquisitions and strategic
investments, demand for our products, metal margins, the effect of
COVID-19 and related governmental and economic responses thereto,
the ability to operate our steel mills at full capacity, future
availability and cost of supplies of raw materials and energy for
our operations, share repurchases, legal proceedings, the
undistributed earnings of our non-U.S. subsidiaries, U.S.
non-residential construction activity, international trade, capital
expenditures, our liquidity and our ability to satisfy future
liquidity requirements, estimated contractual obligations and our
expectations or beliefs concerning future events, including with
respect to the benefits and capabilities of the new micro mill and
the timing for its construction. The statements in this release
that are not historical statements, are forward-looking statements.
These forward-looking statements can generally be identified by
phrases such as we or our management "expects," "anticipates,"
"believes," "estimates," "future," "intends," "may," "plans to,"
"ought," "could," "will," "should," "likely," "appears,"
"projects," "forecasts," "outlook" or other similar words or
phrases, as well as by discussions of strategy, plans, or
intentions.
Although we believe that our expectations are reasonable, we can
give no assurance that these expectations will prove to have been
correct, and actual results may vary materially. Except as required
by law, we undertake no obligation to update, amend or clarify any
forward-looking statements to reflect changed assumptions, the
occurrence of anticipated or unanticipated events, new information
or circumstances or any other changes. Important factors that could
cause actual results to differ materially from our expectations
include those described in Part I, Item 1A, "Risk Factors" of our
annual report on Form 10-K for the fiscal year ended August 31, 2021, as well as the following:
changes in economic conditions which affect demand for our products
or construction activity generally, and the impact of such changes
on the highly cyclical steel industry; rapid and significant
changes in the price of metals, potentially impairing our inventory
values due to declines in commodity prices or reducing the
profitability of our downstream contracts due to rising commodity
pricing; impacts from COVID-19 on the economy, demand for our
products, global supply chain and on our operations, including the
responses of governmental authorities to contain COVID-19 and the
impact of various COVID-19 vaccines; excess capacity in our
industry, particularly in China,
and product availability from competing steel mills and other steel
suppliers including import quantities and pricing; compliance with
and changes in existing and future laws, regulations and other
legal requirements and judicial decisions that govern our business,
including increased environmental regulations associated with
climate change and greenhouse gas emissions; involvement in various
environmental matters that may result in fines, penalties or
judgments; evolving remediation technology, changing regulations,
possible third party contributions, the inherent uncertainties of
the estimation process and other factors that may impact amounts
accrued for environmental liabilities; potential limitations in our
or our customers' abilities to access credit and non-compliance of
their contractual obligations, including payment obligations;
activity in repurchasing shares of our common stock under our
repurchase program; financial covenants and restrictions on the
operation of our business contained in agreements governing our
debt; our ability to successfully identify, consummate and
integrate acquisitions, and the effects that acquisitions may have
on our financial leverage; risks associated with acquisitions
generally, such as the inability to obtain, or delays in obtaining,
required approvals under applicable antitrust legislation and other
regulatory and third party consents and approvals; operating and
startup risks, as well as market risks associated with the
commissioning of new projects could prevent us from realizing
anticipated benefits and could result in a loss of all or a
substantial part of our investments; lower than expected future
levels of revenues and higher than expected future costs; failure
or inability to implement growth strategies in a timely manner;
impact of goodwill impairment charges; impact of long-lived asset
impairment charges; currency fluctuations; global factors, such as
trade measures, military conflicts and political uncertainties,
including changes to current trade regulations, such as Section 232
trade tariffs and quotas, tax legislation and other regulations
which might adversely impact our business; availability and pricing
of electricity, electrodes and natural gas for mill operations;
ability to hire and retain key executives and other employees;
competition from other materials or from competitors that have a
lower cost structure or access to greater financial resources;
information technology interruptions and breaches in security;
ability to make necessary capital expenditures; availability and
pricing of raw materials and other items over which we exert little
influence, including scrap metal, energy and insurance; unexpected
equipment failures; losses or limited potential gains due to
hedging transactions; litigation claims and settlements, court
decisions, regulatory rulings and legal compliance risks; risk of
injury or death to employees, customers or other visitors to our
operations; and civil unrest, protests and riots.
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SOURCE Commercial Metals Company