CMC reducing output up to 30% in N. America
Oct 31, 2008 | 11:56 AM
| Maria Guzzo
In reaction to a downturn in demand, Commercial Metals Co. (CMC) is reducing its output by as much as 30 percent in North America.
William B. Larson, the Irving, Texas-based company's chief financial officer and senior vice president, confirmed during a conference call with analysts that the steelmaker and scrap processor will probably be running at about 70-percent capacity at its mills in the United States.
"That varies tremendously if the mill has more merchant shapes on their product line—they will be operating less," Larson said. "If they are more exposed to rebar they're operating more."
He said CMC's mill in Poland, which produces higher-quality wire rod, will be running at 85 percent to 90 percent capacity.
"We anticipate several tough months ahead and have implemented appropriate action plans," Murray R. McClean, CMC's chairman, president and chief executive officer, said.
As a mini-mill operation, CMC has more flexibility in terms of production movements than blast furnace operators, McClean said.....
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