Released March 24, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Commercial Metals Company (NYSE:CMC) (CMC) (Irving, Texas), a major steel and metal products firm, is enjoying nearly record-high volumes and pricing levels for its downstream backlog, and is anticipating strong demand conditions for its 2023 North American construction season. Industrial Info is tracking nearly $1 billion worth of active projects from CMC, more than $300 million of which is nearing or under construction.
Click on the image at right for a graph detailing CMC's active projects across the U.S., by project type.
Barbara R. Smith, the chief executive officer of CMC, pointed to the company's startup of its $300 million micro-mill addition at its Mesa Steel Mill in Mesa, Arizona, which is expected by the end of this spring. The 500,000-ton-per-year micro mill, which will be the third at the complex, will produce merchant bar quality (MBQ) products through a less expensive continuous-production process, allowing CMC to more efficiently meet growing demand for rebar and MBQ products along the West Coast. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more from a detailed project report.
"We are entering spring with record backlog value for this time of year and continue to experience healthy project bid volumes, giving us confidence in the strength of our book of business," Smith said in a press release this week. "Additionally, CMC stands to benefit from sustainable strong demand from reshoring-oriented industrial projects and public infrastructure work, the more rebar-intensive nature of which represents a long-term tailwind for our business. The start-up of our Arizona 2 mill by the end of this spring positions CMC to capitalize on these emerging structural trends."
Smith noted the Mesa project would be "the first in the world to have merchant bar production capabilities in a continuous process," capacity for which would be further expanded with the company's fourth micro mill in Martinsburg, West Virginia. This project, if approved, would produce another 500,000 tons per year for the U.S. Northeast, Mid-Atlantic and Midwestern regions. Subscribers can learn more from a detailed project report.
CMC expects its capital expenditures for full-year 2023 to range from $550 million to $600 million. The company said in a quarterly earnings-related presentation that much of its 2023 capital allocation would go toward completion of the Mesa and West Virginia projects, along with key equipment replacements and upgrades at several mills.
Those projects include about $68 million worth of upgrades and additions to its structural steel mill in Birmingham, Alabama, which produces about 750,000 tons of raw steel and 600,000 tons of rolled steel per year, and the $50 million replacement of an electric arc furnace at its structural steel mill in Seguin, Texas, which produces 1 million tons of raw steel and 900,000 tons of rolled steel per year. Subscribers can read detailed reports on the Birmingham and Seguin projects.
CMC says it has invested roughly $950 million in working capital since the end of its 2020 fiscal year.
CMC executives also stressed that the 2021 Infrastructure Investment and Jobs Act, which increased federal support for infrastructure investment, is expected to boost annual rebar demand by at least 1.5 million tons. Several states also have significantly increased long-term highway funding.
Other rebar-production facilities set for improvements include CMC's Jacksonville Long Steel Minimill in Baldwin, Florida, which produces 640,000 tons per year. The company plans to add a new building and install new equipment, as well as upgrade existing equipment, at the plant--located, appropriately enough, on Rebar Road. Subscribers can learn more from a detailed project report.
Government support also has allowed CMC and its peers to better address supply-chain failures; executives pointed to a Deloitte survey that said 68% of manufacturing executives intend to invest in "reshoring" projects and shift 36% of their Asia-originating shipments to other regions, including North America.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects featuring CMC's services.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing CMC's active projects across the U.S., by project type.Barbara R. Smith, the chief executive officer of CMC, pointed to the company's startup of its $300 million micro-mill addition at its Mesa Steel Mill in Mesa, Arizona, which is expected by the end of this spring. The 500,000-ton-per-year micro mill, which will be the third at the complex, will produce merchant bar quality (MBQ) products through a less expensive continuous-production process, allowing CMC to more efficiently meet growing demand for rebar and MBQ products along the West Coast. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can learn more from a detailed project report.
"We are entering spring with record backlog value for this time of year and continue to experience healthy project bid volumes, giving us confidence in the strength of our book of business," Smith said in a press release this week. "Additionally, CMC stands to benefit from sustainable strong demand from reshoring-oriented industrial projects and public infrastructure work, the more rebar-intensive nature of which represents a long-term tailwind for our business. The start-up of our Arizona 2 mill by the end of this spring positions CMC to capitalize on these emerging structural trends."
Smith noted the Mesa project would be "the first in the world to have merchant bar production capabilities in a continuous process," capacity for which would be further expanded with the company's fourth micro mill in Martinsburg, West Virginia. This project, if approved, would produce another 500,000 tons per year for the U.S. Northeast, Mid-Atlantic and Midwestern regions. Subscribers can learn more from a detailed project report.
CMC expects its capital expenditures for full-year 2023 to range from $550 million to $600 million. The company said in a quarterly earnings-related presentation that much of its 2023 capital allocation would go toward completion of the Mesa and West Virginia projects, along with key equipment replacements and upgrades at several mills.
Those projects include about $68 million worth of upgrades and additions to its structural steel mill in Birmingham, Alabama, which produces about 750,000 tons of raw steel and 600,000 tons of rolled steel per year, and the $50 million replacement of an electric arc furnace at its structural steel mill in Seguin, Texas, which produces 1 million tons of raw steel and 900,000 tons of rolled steel per year. Subscribers can read detailed reports on the Birmingham and Seguin projects.
CMC says it has invested roughly $950 million in working capital since the end of its 2020 fiscal year.
CMC executives also stressed that the 2021 Infrastructure Investment and Jobs Act, which increased federal support for infrastructure investment, is expected to boost annual rebar demand by at least 1.5 million tons. Several states also have significantly increased long-term highway funding.
Other rebar-production facilities set for improvements include CMC's Jacksonville Long Steel Minimill in Baldwin, Florida, which produces 640,000 tons per year. The company plans to add a new building and install new equipment, as well as upgrade existing equipment, at the plant--located, appropriately enough, on Rebar Road. Subscribers can learn more from a detailed project report.
Government support also has allowed CMC and its peers to better address supply-chain failures; executives pointed to a Deloitte survey that said 68% of manufacturing executives intend to invest in "reshoring" projects and shift 36% of their Asia-originating shipments to other regions, including North America.
Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active projects featuring CMC's services.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
