wiredInUSA March 2018

$92m mill sale M A K I N G T H E NEWS

The Beaumont wire mesh mill will enable WMC to offer mesh products that will complement WMC’s pre- stressed concrete strand operation in Texas. quality, competitively priced wire rod is critical for meeting our customers’ requirements,” WMC said. “We value our existing supplier base and expect to continue to buy from them as we have in the past. However, given increased volatility of supply, the affiliation with Optimus rod production will ensure we can continue to service our customers.” With the sale, Gerdau will no longer operate major wire rod mills in the US. Some of its long product mills formerly made both rebar and rod, but Gerdau agreed to sell off its key US rebar mills to Commercial Metals Co in a deal announced in January. “Consistent supply of

Gerdau SA has agreed to sell its Beaumont wire rod mill, Beaumont Wire Products and Carrollton Wire Products, to Optimus Steel for $92.5 million. The Beaumont steel mill has melt capacity of around 700,000 tons per year and rolling capacity of 800,000 tons per year, producing wire rod and coiled rebar. Beaumont Wire Products and Carrollton Wire Products include a wire mesh mill, while the latter supplies industrial wire into the greater US southern region. Optimus Steel is a newly formed company affiliated with Florida-based Wire Mesh Corp (WMC). WMC and Optimus are “completely separate, independent entities with different management”, though they are also affiliates. WMC will operate the downstream assets, and Optimus Steel will operate the Beaumont rod mill.

9

wiredInUSA - March 2018