Commercial Metals Co. (CMC) announced that CMC Zawiercie S.A. (CMCZ), CMC’s steel mini-mill located in Poland, will install a new rolling mill at an estimated cost of $170 million. Designed to allow efficient and flexible production of an increased medium section product range, the mill will complement the facility’s existing rolling mill, which is dedicated primarily to rebar production. The new mill, which is expected to be commissioned during the summer of 2008, will have a capacity of approximately 650,000 metric tons or rebar, merchant bar and wire rod.
CMC has signed a definitive purchase agreement with the Croatian government to acquire Valjaonica Cijevi Sisak, an EAF-based steel pipe company with a capacity of about 350,000 metric tons per year. CMC will pay about $7 million, assume debt of about $41 million and invest about $40 million in capital expenditures.