CMC Confirms Negotiations to Acquire Control of Polish Steel Mill
June 13, 2003
Commercial Metals Co., headquartered in Irving, Tex., announced that its subsidiary, Commercial Metals (International) AG has been selected as the preferred bidder to continue with exclusive negotiations to buy all the shares of Huta Zawiercie S.A., Zawiercie, Poland owned by Impexmetal S.A., Warsaw, Poland. Impexmetal owns 71.1% of the outstanding shares of Huta Zawiercie. The Polish treasury controls most of the remaining shares. Huta Zawiercie operates a steel minimill similar to those operated domestically by CMC's Manufacturing segment. Huta Zawiercie's annual capacity is estimated at one million metric tons with two electric arc furnaces. Principal products are rebar and wire rod produced on two separate rolling mills. Impexmetal acquired the shares through a privatization transaction in 1995 and has made continuous improvements to the operations while owning the controlling interest.