About Commercial Metals Co

Commercial Metals Company (CMC) provides fabricated rebar and installation services. The company, through an extensive manufacturing network principally located in the United States (U.S.) and Central Europe, offers products and technologies to meet the critical reinforcement needs of the global construction sector. The company's solutions support construction across a wide variety of applications, including infrastructure, non-residential, residential, industrial and energy generation and transmission. Tensar, through its patented foundation systems, produces ground stabilization and soil reinforcement solutions that complement its existing concrete reinforcement product lines and broaden its ability to address multiple early phases of commercial and infrastructure construction, including subgrade, foundation and structures. End customers for these products include commercial, industrial and residential site developers, mining and oil and gas companies, transportation authorities, coastal and waterway authorities and waste management companies, among others. The acquired operations within North America are presented within the company's North America segment and the remaining acquired operations are presented within its Europe segment. Segments The company's operations are conducted through two segments: North America and Europe. North America This segment provides a diverse offering of products and solutions to support the construction sector. Composed primarily of a vertically integrated network of recycling facilities, steel mills and fabrication operations, the company's strategy in North America is to optimize its vertically integrated value chain to maximize profitability while providing industry-leading customer service. To execute its strategy, the company seeks to obtain inputs at the lowest possible cost, including materials procured from its recycling facilities, which are operated to provide low-cost scrap to its steel mills; operate modern, efficient EAF steel mills; and enhance operational efficiency by utilizing its fabrication operations to optimize its steel mill volumes and obtain the highest possible selling prices to maximize metal margin. Furthermore, the company provides construction-related solutions to serve markets that are complementary to those served by its vertically integrated operations. The company's 43 scrap metal recycling facilities, primarily located in the southeast and central U.S., process ferrous and nonferrous scrap metals. These facilities purchase processed and unprocessed ferrous and nonferrous metals from a variety of sources, including manufacturing and industrial plants, metal fabrication plants, electric utilities, machine shops, factories, refineries, shipyards, demolition businesses, automobile salvage firms, wrecking companies and retail individuals. The company's recycling facilities utilize specialized equipment to efficiently process large volumes of ferrous material, including seven large machines capable of shredding obsolete automobiles or other sources of scrap metal. Certain facilities also have nonferrous downstream separation equipment, including extensive equipment at three of the company's facilities that reclaim metal from insulated copper wire, to allow it to capture more metal content. With the exception of precious metals, the company's scrap metal processing facilities recycle and process almost all types of metal. The company sells ferrous and nonferrous scrap metals (collectively referred to as 'raw materials') to steel mills and foundries, aluminum sheet and ingot manufacturers, brass and bronze ingot makers, copper refineries and mills, secondary lead smelters, specialty steel mills, high temperature alloy manufacturers and other consumers. The company's steel mill operations consist of six electric arc furnace (EAF) mini mills, three EAF micro mills and one rerolling mill. The company's steel mills manufacture finished long steel products, including rebar, merchant bar, light structural and other special sections and wire rod, as well as semi-finished billets for rerolling and forging applications (collectively referred to as 'steel products'). Each EAF mini mill consists of a melt shop with an EAF; continuous casting equipment that shapes molten metal into billets; a reheating furnace that prepares billets for rolling; a rolling line that forms products from heated billets; a mechanical cooling bed that receives hot products from the rolling line; finishing facilities that shear, straighten, bundle and prepare products for shipping; and supporting facilities, such as maintenance, warehouse and office areas. The company's EAF micro mills utilize similar equipment and processes; however, these facilities utilize unique continuous process technology where metal flows uninterrupted from melting to casting to rolling. The company's rerolling mill does not utilize a melt shop; the rerolling process begins by reheating billets to roll into finished steel products. CMC has three facilities capable of producing spooled rebar. The company's mills consume large amounts of electricity and natural gas. Its mills ship to a broad range of customers and end markets across the U.S. The primary end markets are construction and fabricating industries, metals service centers, original equipment manufacturers and agricultural, energy and petrochemical industries. In addition, the company's CMC Impact Metals operations manufacture high-strength steel products, such as high-strength bar for the truck trailer industry, special bar quality steel for the energy market and armor plate for military vehicles. The company fills orders for steel products from inventory or with products near completion. The company's fabrication operations include 55 facilities engaged in various aspects of steel fabrication; 51 of these facilities engage in general fabrication of reinforcing steel and four of these facilities fabricate steel fence posts. Fabricated rebar operations shear, bend, weld and fabricate steel and offer innovative products, such as Galvabar (galvanized rebar with a zinc alloy coating that provides corrosion protection and post-fabrication formability), ChromX (designed for high-strength capabilities, corrosion resistance and a service life of more than 100 years) and CryoSteel (a cryogenic reinforcing steel that exceeds minimum performance requirements for strength and ductility at extremely low temperatures). Fabricated rebar is used to reinforce concrete primarily in the construction of commercial and non-commercial buildings, hospitals, convention centers, industrial plants, power plants, highways, bridges, arenas, stadiums and dams, and is generally sold in response to a competitive bid solicitation. The company also provides installation services of fabricated rebar in certain markets. The company obtains steel for its fabrication operations primarily from its own steel mills, and the demand created by its fabrication operations optimizes the production from its steel mills. The company's steel fence posts have many applications, including residential and commercial landscaping and agricultural and livestock containment. Additionally, the company has three facilities that supply post-tension cable for use in a variety of projects, such as slab-on-grade foundations, bridges, buildings, parking structures and rock-and-soil anchors. The fabrication and post-tension cable offerings are collectively referred to as 'downstream products'. In addition, this segment has facilities that provide construction-related solutions to serve markets that are complementary to those served by its vertically integrated operations. The company's Tensar operations sell Tensar geogrids and Geopier foundation systems. Geogrids are polymer-based products used for ground stabilization, soil reinforcement and asphalt optimization in construction applications, including roadways, public infrastructure and industrial facilities. Additional offerings include permanent and bio-degradable rolled mats for the control of soil erosion and sedimentation. Geopier foundation systems are ground improvement solutions that increase the load-bearing characteristics of ground structures and working surfaces and can be applied in soil types and construction situations in which traditional support methods are impractical or would make a project infeasible. The company's Construction Services business sells and rents construction-related products and equipment to concrete installers and other businesses in the construction industry. Additionally, the company has facilities that supply a custom engineered line of anchor cages, bolts and fasteners that are fabricated principally from rebar and are used primarily to secure high voltage electrical transmission poles to concrete foundations. Europe This segment is composed primarily of a vertically integrated network of recycling facilities, an EAF mini mill and fabrication operations located in Poland, as well as facilities that provide construction-related solutions. The company's strategy in Europe is to optimize profitability of the products manufactured by its mini mill, and it executes this strategy in the same way in its Europe segment as it does in its North America segment. The company's 12 scrap metal recycling facilities, located throughout Poland, process ferrous scrap metals for use as a raw material for its mini mill. These facilities provide material almost exclusively to the company's mini mill and operate in order to lower the cost of scrap used by its mini mill. The equipment utilized at these facilities is similar to the company's North America recycling operations and includes one large capacity scrap metal shredder similar to the largest shredder it operates in North America. The company's mini mill is a significant manufacturer of steel products, including rebar, merchant bar and wire rod in Central Europe and includes three rolling lines. The first rolling line is designed to allow efficient and flexible production of a range of medium section merchant bar products. The second rolling line is dedicated primarily to rebar production. The third rolling line is designed to produce high grade wire rod. The company's mini mill sells steel products primarily to fabricators, manufacturers, distributors and construction companies, mostly to customers located within Poland. However, the mini mill also exports steel products to the Czech Republic, Germany, Hungary, Slovakia and other countries. The company's fabrication operations consist of five steel fabrication facilities located in Poland which produce downstream products, primarily fabricated rebar and wire mesh. These facilities obtain rebar and wire rod primarily from the mini mill. Three of the facilities are similar to the facilities operated by the company's North America segment and sell fabricated rebar primarily to contractors for incorporation into construction projects. In addition to fabricated rebar, the company sells other downstream products, including fabricated mesh, assembled rebar cages and other fabricated rebar by-products. The company operates two other fabrication facilities in Poland that produce welded steel mesh, cold rolled wire rod and cold rolled rebar. These facilities also offer wire mesh to customers, which include metals service centers and construction contractors. The company is among the largest manufacturers of wire mesh in Poland. In addition to sales of downstream products in the Polish market, the company exports its downstream products to neighboring countries, such as the Czech Republic and Germany. The downstream products backlog is not a significant factor in evaluating the operations of the company's Europe segment. This segment offers construction-related solutions through its Tensar operations. The Tensar operations within the company's Europe segment have similar operations, products and end customers as the Tensar operations within its North America segment. Seasonality The company's facilities primarily serve customers in the construction industry. Due to the increase in construction activities during the spring and summer months, the company's net sales are higher in its third and fourth quarters than in its first and second quarters (year ended August 31, 2023). Acquisitions On September 15, 2022, the company acquired Advanced Steel Recovery, LLC (ASR), a supplier of recycled ferrous metals located in Southern California. On November 14, 2022, the company acquired Galveston, Texas area metals recycling facility and related assets (collectively, Kodiak). On March 3, 2023, the company acquired Roane Metals Group, LLC (Roane), a supplier of recycled metals with two facilities located in eastern Tennessee. On March 17, 2023, the company acquired Tendon Systems, LLC (Tendon), a leading provider of post-tensioning, barrier cable and concrete restoration solutions to the southeastern U.S. On May 1, 2023, the company acquired BOSTD America, LLC (BOSTD), a geogrid manufacturing facility located in Blackwell, Oklahoma. Prior to the acquisition, BOSTD produced several product lines for the company's Tensar operations under a contract manufacturing arrangement. On July 12, 2023, the company acquired EDSCO Fasteners, LLC (EDSCO), a leading provider of anchoring solutions for the electrical transmission market, with four manufacturing facilities located in North Carolina, Tennessee, Texas and Utah. On April 25, 2022, the company acquired TAC Acquisition Corp. (Tensar). Environmental Matters The U.S. Environmental Protection Agency (EPA), or equivalent state agency, has named the company as a potentially responsible party (PRP) at several federal Superfund sites or similar state sites. History Commercial Metals Company was founded in 1915. The company was incorporated in 1946 in the state of Delaware.