CMC Sustains Transformer Problems

Commercial Metals Co. announced that its Structural Metals, Inc. minimill in Seguin, Tex., has experienced an unanticipated failure of its primary and principal backup electric arc furnace transformers. A second replacement transformer has been installed, is in service and the melt shop in production.

Because of the third transformer's lower electrical capacity, its SMI

melt shop production will likely be reduced 15 to 25 percent compared to prior production levels with the primary transformer in operation. 

In order to continue SMI Texas' rolling mill production at near existing levels, SMI will roll billets from other CMC owned minimills as well as purchase billets from unrelated parties. 

In addition, finished steel products, principally reinforcing bar, will likely be purchased as needed from unrelated parties to supply SMI Texas' customers.