CMC to build new Arizona bar mill, sell SoCal assets

US long steelmaker Commercial Metals Company (CMC) will build a new merchant bar quality (MBQ) micromill located at its Arizona operations near Phoenix and divest its southern California rebar facility.

The new capacity, named the Triple M project, will replace CMC's existing higher-cost rebar capacity at its Rancho Cucamonga, California, mill, which halted melt operations in late 2019. CMC today announced plans to sell the California mill to capitalize on "significant" real estate value of the site.

Scheduled to begin operations in 2023, the new facility will cost $300mn to construct and have a nominal capacity of 500,000 st/yr, 150,000st of which is expected for merchant product.

The MBQ mill will be located adjacent to CMC's existing Mesa, Arizona, micromill, which has a nominal capacity of 400,000 st/yr, according to the Association for Iron and Steel Technology.

CMC said the mill will be the first MBQ-producing facility to utilize continuous production processes and will be targeted toward west coast demand for rebar and merchant bar products. The project is awaiting permitting, regulatory approval, and final incentive negotiations and is expected to employ 185 people.

CMC also expects to construct a solar-panel array to assist in generating a "meaningful" portion of the mill's power.

The mill will be CMC's third micromill in the US, following its Durant, Oklahoma, and Mesa operations.

By Will Ehrhardt