Commercial Metals Co. (CMC), Irving, Texas, has reached an agreement to sell the land underlying its former Steel California and Rebar Etiwanda operations, located in Rancho Cucamonga, 40 miles east of Los Angeles. CMC ceased operations at that site in December 2020, and customers of CMC’s Rebar Etiwanda operations will be serviced from other CMC fabrication locations.
According to a news release from CMC, the Rancho Cucamonga site is expected to be repurposed for other industrial uses.
CMC reports that gross proceeds from the sale of the land will total approximately $300 million and will be used to partially offset the cost of the company’s new Arizona 2 micromill in Mesa, Arizona, anticipated to be commissioned in the second half of 2023. The company has reported that the new electric arc furnace (EAF) micromill is its second in Mesa and third EAF micromill overall. The micromill will produce merchant bar and rebar by using environmentally friendly steelmaking technology.
CMC says the sale is expected to close during CMC’s second fiscal quarter of 2022 and is subject to purchase price adjustments. The closing of the sale transaction also is subject to a customary due diligence review period as well as customary closing conditions.