IRVING, Texas, July 23 /PRNewswire-FirstCall/ -- Commercial Metals
Company (NYSE: CMC), headquartered in Irving, Texas, announced today that
its Swiss subsidiary, Commercial Metals International AG, has signed a
definitive purchase agreement with the Croatian government to acquire
Valjaonica Cijevi Sisak (Sisak). Sisak is an electric arc furnace-based
steel pipe company with a pipe making capacity of about 305,000 metric tons
annually.
CMC will pay HRK 37 million for the shares (about U.S. $7 million),
assume debt of over HRK 200 million (about U.S. $41 million), invest about
U.S. $40 million in capital expenditures and increase working capital by
approximately U.S. $39 million. CMC also has committed to retaining the
employees of Sisak for a period of three years. The purchase agreement is
subject to closing conditions which are expected to be met within the next
sixty days.
Hanns Zoellner, Executive Vice President & President of CMC's Marketing
and Distribution segment, stated, "We appreciate the professional manner in
which the Croatian government moved this acquisition to conclusion. Sisak
will be our base for growth in the robust and key markets of Central and
Eastern Europe. We know that this is a turnaround opportunity and are ready
to invest to bring this mill to a high level of profitability. Our
commitment to our new employees, our expected capital improvements, our
environmental investments, and our community involvement will demonstrate
to the Sisak area that our interests are long term and mutual to all our
important constituencies."
Forward-Looking Statements
This news release contains forward-looking statements regarding the
closing of this transaction. There is inherent risk and uncertainty in any
forward-looking statements. CMC can provide no assurance with respect to
the timing of the closing of this transaction which is subject to
completion by various parties of contractual commitments.
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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