IRVING, Texas, Dec. 20 /PRNewswire-FirstCall/ -- Commercial Metals
Company (NYSE: CMC), headquartered in Irving, Texas, announced today plans
to construct a steel manufacturing facility, a "Micro Mill," in the greater
Phoenix, Arizona area. The Micro Mill is a "continuous continuous" design
where metal flows uninterrupted from melting to casting to rolling. It is
more compact than existing, larger capacity steel minimills taking
advantage of both lower initial capital construction costs and ongoing
operating efficiencies by focusing on cost-effective production of a
limited product range. It is anticipated that the project will cost
approximately $130 million with production anticipated to commence in early
2009, contingent upon the successful completion of site, regulatory,
environmental and permitting issues. The Micro Mill, when completed, will
be a "focused factory" designed to produce primarily reinforcing bar. It
will have an estimated capacity of 280,000 tons per year and will create
approximately 110 new jobs for the area.
Russ Rinn, President and CEO of the CMC Steel Group, said, "CMC has
worked closely with Danieli to jointly develop an innovative combination of
proven technology that will result in a highly efficient, lower capital and
operating cost facility. The Micro Mill will market to a localized,
underserved rebar area and is intended to vertically integrate with our
expanding downstream fabrication operations in the Pacific Southwest. The
greater Phoenix area continues to grow, has an abundant supply of scrap and
a solid construction market which will provide good access to locally
generated raw material and nearby end-use markets. We are also pleased that
our agreement with Danieli contains provisions which provide CMC, as the
first industry participant utilizing this innovative concept, the right to
replicate the Micro Mill in other suitable locations."
Commercial Metals Company President and Chief Executive Officer, Murray
McClean, added, "As we continue the execution of our growth objectives, we
constantly evaluate the merits of greenfield opportunities versus the
purchase of existing capacity. The current market conditions for
acquisitions have convinced us that building this first Micro Mill is the
most economic method to achieve our objectives."
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.
Forward-Looking Statements
This press release contains forward-looking statements regarding the
Company's prospects, including the construction and operation of a new
steel manufacturing facility. There is inherent risk and uncertainty in any
forward-looking statements. Variances will occur and some could be
materially different from management's current opinion. Developments that
could impact the Company's expectations include successful implementation
of new technology, cost of construction, delays due to permitting and
regulatory approvals, market conditions, operating costs including the
availability of scrap, metals pricing over which the Company exerts little
influence, increased capacity and product availability from competing steel
mills and other steel suppliers including import quantities and pricing and
successful marketing of the facility's products.
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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