CMC to build $300 million merchant bar micro-mill in Arizona

Thursday, 13 August 2020 21:44:04 (GMT+3)   |   San Diego

Commercial Metals Company today announced it will build its third micro mill, which will produce merchant bar quality (MBQ) products through a continuous-continuous production process.

The company said the new facility will replace higher cost rebar capacity and allow CMC to more efficiently meet West Coast demand for rebar and MBQ products.

Following a competitive site selection process, CMC's intent is to build the new facility in Mesa, Arizona, pending permitting, regulatory approval and final incentive negotiations. To be constructed at a net investment of approximately $300 million, the new micro mill is expected to begin commissioning in early 2023, employ roughly 185 people and achieve an estimated nominal annual capacity of 500,000 tons, including 150,000 tons of merchant product. Locating the mill adjacent to CMC's current Mesa, Arizona facility will enable the company to leverage its existing infrastructure and the significant micro mill expertise of its engineering and operating personnel, CMC said.

Tracy Porter, Executive Vice President and Chief Operating Officer, stated, "Representing another first in North America, this new micro mill, which we are calling Triple M, will employ the latest technology in EAF power supply systems provided by Danieli, our equipment provider.  Among the many advantages, we selected Danieli's 'Q-One' technology because it allows us to directly connect the Electric Arc Furnace and Ladle Furnace to renewable energy sources such as solar and wind, and we intend to construct a solar array on our plant site to provide a meaningful portion of the facility's power.  With this new advanced technology, coupled with the continuous steelmaking process, we will be one of the most efficient steel producers in the world."


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