The Opportunity
Commercial Metals Company (“CMC”) has been an SDG client for over 20 years. CMC recycles and fabricates steel products and provides related materials and services through a network of facilities that includes seven electric arc furnace (EAF) mini mills, two EAF micro mills, one rerolling mill, steel fabrication and processing plants, construction-related product warehouses, and metal recycling facilities in the United States and Poland.
CMC utilizes a sustainable manufacturing process that produces 65% less CO2 per ton of steel than industry averages; they are the largest producer of reinforcing bar products in North America and Central Europe. For this engagement, SDG was brought on board to assist with site selection and incentive negotiation services for the location of CMC’s fourth state-of-the-art micro mill to serve growing demands in the Northeast United States.
The Strategy and Solution
For this search, it was critically important to identify a location with optimal access to scrap and customer markets
in major population centers and a site that could support the unique heavy utility demands inherent to modern steel making. SDG developed a strategy to meet these critical site criteria by leveraging its extensive network, including State Economic Development Organizations, Class I and Short-Line Rail providers, and electric utilities.
Because of the unique demands of this heavy project, SDG conducted search activities in nine states, engaged with 25+ utility providers, and evaluated over 70 Short-Line Rail networks. In total, 85 candidate sites were identified and evaluated for CMC on this site search.
The project ultimately broke ground in Berkeley County, West Virginia. In partnership with the State, County, rail provider, and electricity provider, SDG also facilitated a lucrative incentive package for CMC to offset upfront capital costs and ongoing operational costs.
Learn more about the project site.
