Commercial Metals Announces Plan To Build State-Of-The-Art Micro Mill

Commercial Metals Company (“CMC”) announced, as the next phase of its long-term growth strategy, a plan to construct another state-of-the-art micro mill geographically situated to primarily serve the Northeast, Mid-Atlantic, and Mid-Western United States markets. CMC believes that the location and capabilities of the planned facility will significantly augment CMC’s scale in the Eastern U.S. and synergistically complement its existing operational footprint. CMC is currently in the site selection process and exploring several suitable options.

The new micro mill will be among the most environmentally friendly steelmaking operations in the world. The technology to be employed is lower in both energy consumption and greenhouse gas emissions compared to traditional steelmaking processes.

Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer, commented “This is an exciting new investment for CMC and our customers. The new micro mill will fortify our position in the large construction markets within the region and optimize CMC’s existing Eastern U.S. operational footprint through enhanced production flexibility, improved service capabilities, and logistical efficiencies.”

Ms. Smith continued, “the recent enactment of the Infrastructure Investment and Jobs Act should provide an additional tailwind to what was already an attractive expected return on investment for the project. We anticipate the legislation will stimulate substantial incremental demand for construction steel, particularly in the targeted geographies where core infrastructure is among the oldest in the U.S.”

“CMC was the first in the world to adopt the innovative micro mill steelmaking process, and today’s announcement further solidifies our position at the forefront of this revolution in long steel production. Once the project is completed, we expect that nearly a third of our North American steel output will be produced in a micro mill, giving CMC the most operationally efficient and environmentally friendly plant network of any long steelmaker globally.”

Following receipt of state and local incentives, permitting, and other necessary approvals, the construction of the planned mill is expected to take roughly two years.

About Commercial Metals Company

Commercial Metals Company and its subsidiaries manufacture, recycle and fabricate steel and metal products, and provide related materials and services through a network of facilities that includes seven electric arc furnace (“EAF”) mini mills, two EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses and metal recycling facilities in the United States and Poland.

Source: Commercial Metals Company