Commercial Metals Company Announces Closure Of Fence Post Operations In Magnolia, Arkansas
IRVING, Texas, Feb. 9, 2016 /PRNewswire/ -- Commercial Metals Company (NYSE: CMC) today announced the closure of its fence post operations in Magnolia, Arkansas. Production will be relocated to the San Marcos, Texas fence post production facility, as operations in Magnolia wind down and cease in their entirety by the end of the company's third fiscal quarter. Customers will not be impacted by this decision. In addition, CMC Steel Arkansas, a rerolling mill operated in Magnolia, Arkansas since 1987, will significantly reduce production levels over the same time period. These decisions are primarily the result of what CMC believes to be unfairly traded and illegally dumped steel products entering the US market. The decision to consolidate production in Texas reflects the impact of unfair trade on several plants and products. Approximately 40 employees are being impacted by the closure.
"It is always a difficult decision to curtail operations which affect our employment levels and the community at large. The issue of global steel overcapacity is having real impacts on people and communities across the country. We have been working tirelessly to address these issues with the US Department of Commerce and the International Trade Commission. Unfortunately the actions taken to date by the U.S. government have not been effective, and we continue to see excessive quantities of unfairly traded steel entering the US market. This ineffectiveness has now taken a real toll in Magnolia," commented Tracy Porter, President CMC Americas.
Commercial Metals Company and its subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, metal recycling facilities and marketing and distribution offices in the United States and in strategic international markets.
This news release contains forward-looking statements regarding the Company's expectations relating to operations in Arkansas, steel fence post operations and the impact of operational changes on the Company's customers. These forward-looking statements generally can be identified by phrases such as we, CMC or its management "expects," "anticipates," "believes," "estimates," "intends," "plans to," "ought," "could," "will," "should," "likely," "appears" or other similar words or phrases. There are inherent risks and uncertainties in any forward-looking statements. Although we believe that our expectations are reasonable, we can give no assurance that these expectations will prove to have been correct, and actual results may vary materially, including as a result of the effects of the risk factors described in the Company's annual report on Form 10-K filed with the U.S. Securities and Exchange Commission on October 30, 2015. Except as required by law, the Company undertakes no obligation to update, amend or clarify any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, new information or circumstances or otherwise.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/commercial-metals-company-announces-closure-of-fence-post-operations-in-magnolia-arkansas-300217645.html
SOURCE Commercial Metals Company