Steel Mills

CMC to Exit International Marketing and Distribution

Written by Tim Triplett


Commercial Metals Co., Irving, Texas, plans to exit its International Marketing and Distribution Segment. As an initial step, on June 12, its CMC Cometals International subsidiary signed a definitive agreement to sell its raw materials trading division, CMC Cometals, to Traxys North America L.L. and Traxys Europe S.A., affiliates of The Carlyle Group.

CMC Cometals markets, distributes and processes metal, ores, concentrates, industrial minerals, ferroalloys, chemicals and industrial products worldwide. The transaction, subject to regulatory approvals, is expected to close later this summer.

“We are pleased to see Cometals combine with the highly respected Traxys group and are confident that this transaction will provide Cometals with the best platform to grow its business and serve its customers and suppliers,” said President and COO Barbara Smith.

“We are excited about this transaction and have identified many opportunities to grow the Cometals business as part of the Traxys Group,” added Traxys CEO Mark Kristoff. “The Cometals team has enjoyed a strong track record of supplier and customer service that complements Traxys’ activities and broadens our product offerings.”

Under the new ownership structure, the Cometals team will continue to operate from its current locations in the U.S., China, Benelux and Russia.

In addition, the company announced its plan to pursue a sale of its CMC Cometals Steel division located in Irving, Texas, which markets steel products, as well as a restructuring and sale of its remaining trading operations located in Asia and Australia.

“These actions will allow the company to focus its capital and other resources on its core steel manufacturing operations in the United States and Poland, which are well positioned to serve the robust demand for steel needed to support nonresidential construction and infrastructure in the United States and Poland,” Smith added.

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