IRVING, Texas, Sept. 19 /PRNewswire-FirstCall/ -- Commercial Metals
Company (NYSE: CMC), headquartered in Irving, Texas, announced today that
its Swiss subsidiary, Commercial Metals International AG, has completed the
acquisition of all outstanding shares of Valjaonica Cijevi Sisak (VCS) from
the Croatian Privatization Fund and Croatian government. VCS's name has
been changed to CMC Sisak d.o.o.(CMC Sisak). CMC Sisak is an electric arc
furnace based steel pipe manufacturer with annual capacity estimated at
about 305,000 metric tons.
The purchase price includes the assumption of all debt owed by VCS to
the Croatian government, banks and trade creditors (approximately U.S. $45
million) and an additional payment (maximum of approximately U.S. $7
million) for the shares. CMC Sisak plans to spend not less than U.S. $38
million over five years in capital expenditures and will retain existing
employees for a period of three years.
Hanns Zoellner, Executive Vice President of CMC and President of CMC
International, stated, "The new name denotes both CMC's financial strength,
steelmaking expertise and global market emphasis while continuing the Sisak
brand tradition which is synonymous with quality pipes and tubes. With
better utilization of existing capacity and increased sales through the CMC
International division, we believe CMC Sisak will become a profitable
operation achieving our financial targets. Our plans include expenditures
for environmental improvements as well as improved efficiency in the
steelmaking operation through installation of a new electric arc furnace, a
ladle furnace and upgrades to the caster. Our strategy is to expand CMC's
production capability in tubular and other products in the key markets of
Central and Eastern Europe, and CMC Sisak is the optimal platform for
growth in this key region."
Murray R. McClean, CMC's President & Chief Executive Officer, added,
"We are pleased with the successful completion of the privatization of CMC
Sisak which is very important for the Croatian economy. Our main objective
is to make what we now proudly call CMC Sisak competitive in global
markets. I am certain with the combined experience and knowledge of our
employees, adequate capital investments and the position of CMC in the
global marketplace, we will realize that goal and ensure growth and
prosperity for CMC Sisak."
Forward-Looking Statements
Statements made in this press release that relate to future events,
expectations, performance or financial results of CMC are forward-looking
statements within the meanings of securities laws. CMC cautions that, by
their nature, forward-looking statements involve risk and uncertainty. In
particular there can be no assurance that the acquisition discussed in this
press release will be advantageous to CMC or that profitability or other
financial objectives will be achieved.
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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