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Commercial Metals Company Selects Mesa, Arizona for $300 Million Micro Mill

08/18/2020
Commercial Metals Company, a Texas-based steel and metal manufacturer, plans to construct its new $300 million rebar micro mill adjacent to its current operation center and campus in Mesa, Arizona. The company plans to hire 185 additional associates.

The expansion in Mesa represents the company’s third micro mill, and the first in the world to produce MBQ products through a continuous-continuous production process. The new facility will replace higher cost rebar capacity and allow CMC to more efficiently meet West Coast demand for rebar and MBQ products. It’s anticipated the facility will be operational by early 2023.

“CMC has operated our existing mill in Mesa, Arizona since 2009, and we are excited to announce the expansion of our footprint in the state with the construction of our third, state-of-the-art micro mill adjacent to our existing mill,” Barbara R. Smith, Chairman of the Board, President and CEO of CMC said. “The State of Arizona and City of Mesa have proven to be business-friendly partners and we look forward to continuing that partnership with this investment.”

Locating the mill adjacent to CMC's current Mesa, Arizona facility will enable the Company to leverage its existing infrastructure and the significant micro mill expertise of its engineering and operating personnel. Its new micro mill is expected to produce an estimated nominal annual capacity of 500,000 tons, including 150,000 tons of merchant product, Arizona Commerce Authority in partnership with Salt River Project said. The new facility will also allow CMC to more efficiently meet West Coast demand for rebar and merchant bar quality products, while helping optimize the output of its national mill network by replacing higher cost rebar capacity.

“By monetizing the significant value associated with our Southern California real estate, this lowers the project's capital requirements and increases its returns. Offering bottom line growth and significant environmental benefits, this project is a win for our customers, employees, the local community, and shareholders," she added.

"Among the many advantages, we selected Danieli's 'Q-One' technology because it allows us to directly connect the Electric Arc Furnace and Ladle Furnace to renewable energy sources such as solar and wind, and we intend to construct a solar array on our plant site to provide a meaningful portion of the facility's power. With this new advanced technology, coupled with the continuous steelmaking process, we will be one of the most efficient steel producers in the world," noted Tracy Porter, Executive Vice President and COO.

“The CMC expansion will bring hundreds of new manufacturing jobs to the East Valley and have a highly positive impact on our state’s economy,” said Sandra Watson, Arizona Commerce Authority President and CEO. “Arizona continues to demonstrate that our top talent, strategic geographic location, modern infrastructure and pro-business mindset provide the perfect platform for companies like CMC to grow and succeed.”

Manufacturing provides rewarding careers to hundreds of thousands of hard-working Arizonans,” said Governor Doug Ducey. “The significant investment by Commercial Metals Company further strengthens Arizona’s robust manufacturing industry. We look forward to welcoming this expansion in Mesa, which will create new job opportunities for our citizens.”

When fully operational, CMC’s new mill is expected to bring nearly half a billion dollars of economic activity annually to the Mesa community and will add roughly 1,000 new jobs in the state of Arizona, including employment at vendors and local businesses, economic development officials said. Commercial Metals Company will build its micro mill in Mesa, pending permitting, regulatory approval and final incentive negotiations.

CMC and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network of facilities that includes; seven electric arc furnace mini mills, two EAF micro mills, two rerolling mills, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the U.S. and Poland. According to company officials CMC Steel operates ten state-of-the-art EAF mini and micro mills across the U.S., and is the largest producer of rebar in the nation.

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