Commercial Metals Company to divest Rancho Cucamonga site for $300m

Commercial Metals Company has agreed to sell the land that had housed its former Steel California and Rebar Etiwanda operations in Rancho Cucamonga in California for around $300 million.

The land to be sold by the Texas-based steel and metal manufacturer is located 40 miles east of Los Angeles.

The Steel California operations of Commercial Metals Company had stopped last December, and customers of its Rebar Etiwanda operations will be serviced from other fabrication locations of Commercial Metals Company.

The site is anticipated to be repurposed for other industrial uses.

Commercial Metals Company said that it will use the proceeds from the deal to partially offset the cost of its new Arizona 2 micro mill, which is expected to begin operations in the second half of fiscal 2023.

The deal, which is likely to close during the second fiscal quarter of next year is contingent on a customary due diligence review period and customary closing conditions.