Heat Treat Industry News
December 09, 2008
Mesa steel mill to employ about 200
CMC Steel Arizona officially opened its state-of-the-art steel mill in east Mesa Tuesday in the face of an economic recession that has severely depressed demand for the plant's output.
Despite the unpromising economic climate, officials of Irving, Texas-based Commercial Metals Co., the plant's parent company, said they will plan to ramp up to full production at the plant next year because they believe in the growth prospects of the East Valley and Arizona.
"We are building for the long term," said Russ Rinn, executive vice president of Commercial Metals, adding that "our product will sell itself."
The $155 million plant, located at 11444 E. Germann Road, will turn scrap metal into concrete-reinforcing bar, or rebar, for use primarily in commercial buildings, roads and other infrastructure projects. It uses a new type of manufacturing process developed by Danieli, an Italian steel company that provided equipment for the factory.
It is the first plant of its type in the United States, which prompted Rinn to comment "the rest of the world industry is watching" to see how it will perform.
Called a micromill, it is smaller than most steel-making plants and uses one uninterrupted process to melt, cast and roll the steel. The technology saves energy and is more environmentally friendly than conventional steel-making techniques, the company said.
CMC began producing rebar on a test basis at the plant during the summer. The plant will employ about 140 people when it is at full capacity plus another 40 at an adjacent fabricating plant where the rebar is custom assembled for specific projects.
The company plans to hire an additional 30 workers for a third shift, said General Manager Steve Henderson. Interested people can apply through Monster.com by typing "CMC Steel Arizona" in the search box, officials said.
Unlike the familiar image of steel mills with belching smokestacks, the east Mesa plant produces no visible pollution, said Mike Peters, the company's environmental manager. Particulates are captured in a bag house and are recycled for use in making cement, he said.
However, the plant does emit small amounts of greenhouse gases, which the U.S. Environmental Protection Agency has determined are health hazards. The federal agency has indicated it will begin regulating those emissions, but Peters said it's too soon to know if that will have any impact on the Mesa plant.
Mesa officials were ecstatic about the opening, saying the creation of nearly 200 new jobs is welcome in a down economy.
"In the midst of pretty dire financial news, it's nice to have something positive happen," said Mayor Scott Smith.
Councilman Scott Somers said the plant is well positioned to supply steel to big developments planned in east Mesa, including the Williams Gateway Freeway, new construction at Phoenix-Mesa Gateway Airport and urban developments at the former General Motors Proving Ground.
"This is where steel for those projects almost surely will come from," he said
SOURCE: Ed Taylor, Tribune - December 8, 2009 - 2:46PM
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