15 Jan

Key Operations Of Commercial Metals Company

WRITTEN BY Mohit Oberoi, CFA

CMC operations

Headquartered in Texas, Commercial Metals Company (CMC) has four primary business segments. These segments make up the key operations of Commercial Metals Company.

Key Operations Of Commercial Metals Company

Recycling

CMC’s recycling segment processes approximately four million metric tons of ferrous and non-ferrous scrap annually. This segment runs 60 operations globally.

Nucor Corp. (NUE) and Steel Dynamics Inc. (STLD) also have scrap-processing facilities. Currently, these companies are among the top holdings of the SPDR S&P Metals & Mining ETF (XME).

Steel Mills

CMC has an annual steel-making capacity of 4.8 million metric tons. The company operates five steel plants in the United States and one in Poland. CMC is the third-largest producer of long steel products in the United States and is the largest long product manufacturer in Poland.

Fabrication

CMC has 1.5 million metric tons of fabrication capacity. The fabrication segment operates over 80 locations in the United States and five globally. This segment handles all commercial and public construction projects. It also serves the energy and infrastructure markets.

Distribution

CMC possesses over two million metric tons of processing and distribution capacity. The distribution segment operates in over 40 locations around the world. It distributes semi-finished and finished flat products as well as long and specialty steel products in most steel-consuming markets globally.

CMC’s distribution business is unique among steel producers. Generally, metal service center companies like Reliance Steel and Aluminum (RS) distribute metal products.

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