AZ: New Steel Micro Mill to Be Built in Mesa, Creating 185 Jobs
17 Aug, 2020
The Arizona Commerce Authority (ACA) and City of Mesa — in partnership with Salt River Project (SRP) — announced the expansion of Commercial Metals Company (NYSE: CMC). The Texas-based steel and metal manufacturer plans to construct a new facility adjacent to its current operation in Mesa and create 185 additional jobs.
The new micro mill represents a net investment of $300 million dollars. It’s anticipated the facility will be operational by early 2023.
“Manufacturing provides rewarding careers to hundreds of thousands of hard-working Arizonans,” said Governor Doug Ducey. “The significant investment by Commercial Metals Company further strengthens Arizona’s robust manufacturing industry. We look forward to welcoming this expansion in Mesa, which will create new job opportunities for our citizens.”
Following a competitive site selection process, CMC chose to expand in Mesa to enable the company to leverage its existing infrastructure and the significant micro mill expertise of its engineering and operating personnel.
“CMC has operated our existing mill in Mesa, Arizona since 2009, and we are excited to announce the expansion of our footprint in the state with the construction of our third, state-of-the-art micro mill adjacent to our existing mill,” stated Barbara R. Smith, Chairman of the Board, President and Chief Executive Officer of CMC. “The State of Arizona and City of Mesa have proven to be business-friendly partners and we look forward to continuing that partnership with this investment.”
The new facility will also allow CMC to more efficiently meet West Coast demand for rebar and merchant bar quality (MBQ) products, while helping optimize the output of its national mill network by replacing higher cost rebar capacity.
“CMC’s commitment to innovation and new technology makes them a leader in the steel production, fabrication and recycling industry,” said Mesa Mayor John Giles. “We are proud of the work they do here in Mesa and look forward to their continued success.”
“The CMC expansion will bring hundreds of new manufacturing jobs to the East Valley and have a highly positive impact on our state’s economy,” said Sandra Watson, Arizona Commerce Authority President & CEO. “Arizona continues to demonstrate that our top talent, strategic geographic location, modern infrastructure and pro-business mindset provide the perfect platform for companies like CMC to grow and succeed.”
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.
“CMC continues to be an amazing partner and asset to the City of Mesa. Their investments in our community, both financially and through job creation, and in their operations show why they continue to be on the cutting edge of their industry,” said Mesa District 6 Councilmember Kevin Thompson. “This expansion once again proves their commitment to the Germann Road Industrial Corridor and to Mesa.”
The expansion in Mesa represents the company’s third micro mill, and the first in the world to produce MBQ products through a continuous-continuous production process.
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