IRVING, Texas, Aug. 13, 2020 /PRNewswire/ -- Commercial
Metals Company (NYSE: CMC) today announced it will build its third
micro mill. The mill will be the first in the world to
produce merchant bar quality (MBQ) products through a
continuous-continuous production process. The new
facility will replace higher cost rebar capacity and allow CMC to
more efficiently meet West Coast demand for rebar and MBQ
products.
Barbara R. Smith, Chairman of the
Board, President and Chief Executive Officer of CMC, said, "We are
excited by the tremendous promise of CMC's third micro mill. This
is a smart growth initiative that feeds the large underlying West
Coast demand for rebar and merchant bar, replacing inefficient
existing rebar capacity with environmentally friendly
technology. By monetizing the significant value associated
with our Southern California real
estate, this lowers the project's capital requirements and
increases its returns. Offering bottom line growth and significant
environmental benefits, this project is a win for our customers,
employees, the local community, and shareholders."
Following a competitive site selection process, CMC's intent is
to build the new facility in Mesa,
Arizona, pending permitting, regulatory approval and final
incentive negotiations. To be constructed at a net investment
of approximately $300 million, the
new micro mill is expected to begin commissioning in early 2023,
employ roughly 185 people and achieve an estimated nominal annual
capacity of 500,000 tons, including 150,000 tons of merchant
product. Locating the mill adjacent to CMC's current
Mesa, Arizona facility will enable
the Company to leverage its existing infrastructure and the
significant micro mill expertise of its engineering and operating
personnel.
When fully operational, CMC's new mill will bring nearly half a
billion dollars of economic activity annually to the Mesa community and will add roughly 1,000 new
jobs in the state of Arizona
including employment at vendors and local businesses.
Tracy Porter, Executive Vice
President and Chief Operating Officer, stated, "Representing
another first in North America,
this new micro mill, which we are calling Triple M, will employ the
latest technology in EAF power supply systems provided by Danieli,
our equipment provider. Among the many advantages, we
selected Danieli's 'Q-One' technology because it allows us to
directly connect the Electric Arc Furnace and Ladle Furnace to
renewable energy sources such as solar and wind, and we intend to
construct a solar array on our plant site to provide a meaningful
portion of the facility's power. With this new advanced
technology, coupled with the continuous steelmaking process, we
will be one of the most efficient steel producers in the
world."
Webcast and Dial-In
CMC invites you to listen to a live broadcast of its investor
day today, Thursday, August 13, 2020, at 8:30 a.m. ET. The call is accessible via our
website at www.cmc.com. In the event you are unable to listen
to the live broadcast, the call will be archived and available for
replay on our website on the next business day. Financial and
statistical information presented in the broadcast are located on
CMC's website under "Investors".
About Commercial Metals Company
Commercial Metals Company and its subsidiaries manufacture,
recycle and market steel and metal products, related materials and
services through a network of facilities that includes seven
electric arc furnace ("EAF") mini mills, two EAF micro mills, two
rerolling mills, steel fabrication and processing plants,
construction-related product warehouses, and metal recycling
facilities in the U.S. and Poland.
Forward-Looking Statements
This news release contains forward-looking statements regarding
CMC's expectations relating to the construction, commissioning and
operation of its new Mesa, Arizona
micro mill and associated general economic conditions and key
macroeconomic drivers that impact CMC's business. These
forward-looking statements generally can be identified by phrases
such as we, CMC or its management "expects," "anticipates,"
"believes," "estimates," "intends," "plans to," "ought," "could,"
"will," "should," "likely," "appears," "projects," "forecasts,"
"outlook" or other similar words or phrases. There are inherent
risks and uncertainties in any forward-looking statements. We
caution readers not to place undue reliance on any forward-looking
statements. Our forward-looking statements are based on
management's expectations and beliefs as of the time this news
release is filed with the Securities and Exchange Commission or,
with respect to any document incorporated by reference, as of the
time such document was prepared. 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.
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SOURCE Commercial Metals Company