Commercial Metals Company Announced Sale of California Site
Posted on 04 October 2021
Irving, Texas-headquartered Commercial Metals Company (CMC) announced decision to sell its Rancho Cucamonga site. The site will be repurposed to be used for other industrial projects. The sale is expected to close during the second fiscal quarter 2022, subject to purchase price adjustments, customary closing conditions and a due diligence review period.
The company is said to have reached an agreement to sell the land underlying its former Steel California and Rebar Etiwanda operations, located 40 miles east of Los Angeles. It must be noted that the company’s Steel California operations had ended operations in December last year. CMC announced that its Rebar Etiwanda operations customers will be serviced from its other locations.
CMC will receive approximately $300 million as proceeds from the sale transaction, which will be used to partially offset the cost of CMC’s new Arizona steel micro mill, which is expected to be commissioned during the second half of fiscal 2023.
CMC had reported revenues of around $5.5 billion in 2020. The company operates network of steel mills and processing plants across the U.S. and Poland. It manufactures, recycles and fabricates steel and metal products.Source : Scrap Monster