Dec. 22, 2006 — Commercial Metals Co. announced plans to construct a "Micro Mill" steel manufacturing facility in the greater Phoenix, Ariz., area.
CMC’s Micro Mill will be a "continuous continuous" design, with an uninterrupted flow of metal from melting to casting to rolling. The facility will be more compact than existing, larger-capacity steel minimills, in order to take advantage of both lower initial capital construction costs and ongoing operating efficiencies. The Micro Mill will focus on cost-effective production of a limited product range.
“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,” said Russ Rinn, President and CEO of the CMC Steel Group, said Russ Rinn, President and CEO of the CMC Steel Group. “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."
CMC anticipates that the project will cost approximately $130 million. When completed, the Micro Mill will be a "focused factory" designed to produce reinforcing bar. It will have an estimated capacity of 280,000 tons per year and will create approximately 110 new jobs for the area.
“As we continue the execution of our growth objectives, we constantly evaluate the merits of greenfield opportunities versus the purchase of existing capacity,” added CMC President and CEO, Murray McClean. “The current market conditions for acquisitions have convinced us that building this first Micro Mill is the most economic method to achieve our objectives.”
Production at the new Micro Mill is expected to commence in early 2009, contingent upon the successful completion of site, regulatory, environmental and permitting issues.
Headquartered in Irving, Texas, Commercial Metals and its 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.