Commercial Metals Company has announced plans to build a third micro mill.
The mill will be the first in the world to produce merchant bar quality (MBQ) products through a continuous-continuous production process. The new facility will replace higher cost rebar capacity and allow CMC to more efficiently meet West Coast demand for rebar and MBQ products.
CMC operates a steel mini mill south of Magnolia.
Barbara R. Smith, chairman of the board, president and chief executive officer of CMC, said, “We are excited by the tremendous promise of CMC’s third micro mill. This is a smart growth initiative that feeds the large underlying West Coast demand for rebar and merchant bar, replacing inefficient existing rebar capacity with environmentally friendly technology.
“By monetizing the significant value associated with our Southern California real estate, this lowers the project’s capital requirements and increases its returns. Offering bottom line growth and significant environmental benefits, this project is a win for our customers, employees, the local community, and shareholders.”
Following a competitive site selection process, CMC’s intent is to build the new facility in Mesa, AZ, 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 facility will enable the company to leverage its existing infrastructure and the significant micro mill expertise of its engineering and operating personnel.
When fully operational, CMC’s new mill will bring nearly half a billion dollars of economic activity annually to the Mesa community and will add roughly 1,000 new jobs in the state of Arizona, including employment at vendors and local businesses.
Tracy Porter, executive vice president and chief operating officer, said, “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,” Porter said.