Texas-based Commercial Metals Co. announced Wednesday that it plans to build a $130 million “micro mill” in Phoenix, Arizona.
The innovative steel mill will focus on the
production of
rebar, using what the company calls a “continuous continuous” design which will allow the steel to flow uninterrupted from melting to casting to rolling.
The company says in its press release that the compact design of the mill will allow the company to take advantage of lower
construction costs, and the limited product range will result in more cost-effective and efficient operations.
Annual capacity will be 280,000 net tons per year, with
production expected to start in early 2009.
President and CEO of CMC Steel Group Russ Rinn told press: “The micro mill will market to a localized, under-served
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.”