Commercial Metals Division Eyes Czech Mills

CMC Trading AG, a Swiss-based wholly owned subsidiary of Commerical Metals Co., has expressed an interest in participating, along with Trinecke Zelezarny, in a bid to acquire Czech steel makers Nova Hut and Vysoke Peca Ostrava.

Stanley Rabin, chairman, president and CEO of Commercial Metals said, "We have been for some time and remain interested in participating in the consolidation of the Czech steel industry. This development will almost certainly occur, although the timing and structure of transactions to accomplish this result are difficult to predict. The Czech government has stated it would like to see one strong, competitive, combined Czech steel company and our concept moves in that direction."

Rabin continued, "Based on experience with our equity interest in Trinecke Zelezarny, we are confident that CMC Trading AG would bring needed marketing and financial expertise to a joint venture with TZ and possibly others to acquire certain long product segments of the Czech steel industry.

“Any joint venture acquisition scenario would involve limited direct financing from CMC with the new venture operating the facilities proceeding substantially on a stand alone operational and financial basis. The prospects are interesting but there are many hurdles that must be overcome politically, financially and operationally before such a venture can proceed."