CMC Acquiring Croatian Mill

A subsidiary of Commercial Metals Co. has signed a purchase agreement with the Croation government to acquire Valijaonica Cijevi Sistak, an EAF facility that produces around 305,000 metric tons of steel pipe a year.

Commercial Metals International AG, its Swiss-based subsidiary, will pay around $7 million, assume debt of about $41 million, invest about $40 million in capital expenditures and increase working capital by about $39 million. CMC also has committed to retaining the employees of Sisak for a period of three years.

Hanns Zoellner, executive VP & president of CMC's Marketing and Distribution segment, said, "Sisak will be our base for growth in the robust and key markets of Central and Eastern Europe. We know that this is a turnaround opportunity and are ready to invest to bring this mill to a high level of profitability. Our commitment to our new employees, our expected capital improvements, our environmental investments, and our community involvement will demonstrate to the Sisak area that our interests are long term and mutual to all our important constituencies."