IRVING, Texas, March 2 /PRNewswire-FirstCall/ -- Commercial Metals
Company (NYSE: CMC), headquartered in Irving, Texas, announced today that
its Polish steel mill, CMC Zawiercie S.A. (CMCZ), has purchased all of the
shares of CMCZ owned by the Polish Ministry of State Treasury. The Ministry
retained the minority interest in CMCZ at the time of privatization of the
mill in 1995 and continued to hold the shares following CMC's acquisition
from Impexmetal S.A. of the controlling interest in CMCZ in 2003. The
shares acquired represent approximately 26.8% of the total CMCZ shares
outstanding. CMCZ paid in aggregate approximately $59.5 million for the
shares and intends to redeem the shares. With this purchase and subsequent
redemption, CMC holds approximately 99% of all CMCZ shares outstanding.
CMCZ is the second-largest steel producer in Poland with annual
production of approximately 1.3 million metric tons. Facilities include two
electric arc furnaces, ladle furnaces and casters. Principal products are
rebar and wire rod produced on two separate rolling mills. Since
acquisition in 2003, CMC has implemented an aggressive capital investment
program at CMCZ to increase production, develop downstream steel
fabrication operations and improve environmental protection at the
facility.
Murray McClean, President and Chief Executive Officer of Commercial
Metals Company, stated, "This purchase achieves an objective established
back when we acquired CMCZ. We appreciate the professional manner in which
the Ministry of State Treasury handled the evaluation and negotiation of a
fair and reasonable purchase price. We look forward to continuing with our
long-term plans to make CMCZ a truly world-class steel mill." Hanns
Zoellner, Executive Vice President of Commercial Metals Company and
Chairman of the Supervisory Board of CMCZ, commented, "This action will
continue to allow us to grow CMCZ's business and expand our reach in the
key markets of Eastern and Central Europe. We want to thank the employees
of CMCZ for their dedication and efforts to date, and we look forward to an
even brighter future with more success."
Commercial Metals Company and subsidiaries manufacture, recycle and
market steel and metal products, related materials and services through a
network including steel minimills, steel fabrication and processing plants,
construction-related product warehouses, a copper tube mill, metal
recycling facilities and marketing and distribution offices in the United
States and in strategic overseas markets.
SOURCE Commercial Metals Company
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Related links:
http://www.cmc.com
CONTACT:
Debbie Okle, Director, Public Relations of
Commercial Metals Company, +1-214-689-4354
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