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February 2007

Commercial Metals Company to build steel micro mill

Commercial Metals Company, headquartered in Irving, Texas plans to construct a steel "micro mill" in the Phoenix, Arizona area.

The micro mill is a "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.

The project is expected to cost $130 million with production to commence in early 2009, contingent upon the successful completion of site, regulatory, environmental and permitting issues.

The micro mill will produce primarily reinforcing bar with an estimated capacity of 280,000 tons per year and will create approximately 110 new jobs in the area.

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