Dec. 1, 2006 — Commercial Metals Co. has entered into a definitive purchase agreement with Bruhler Stahlhandel GmbH to acquire substantially all the operating assets of its steel fabrication business in Rosslau/Saxony-Anhalt in eastern Germany. The acquisition will be made by CMC's subsidiary Commercial Metals Deutschland GmbH.

Bruhler Stahlhandel’s fabrication unit has an annual capacity of 40,000 tons with customers in the eastern and western part of Germany serving the construction industry. It reaches the major markets surrounding Leipzig, Halle, Berlin, Hanover and Hamburg.

“"This acquisition continues our vertical integration strategy in Central Europe by enhancing our downstream capability in a strategic market,” said Hanns Zoellner, President of CMC's Marketing and Distribution Segment. Zoellner will have responsibility for the operations.

Ludo Gajdos, President of CMC Zawiercie SA, CMC's Polish steel minimill, added, “Major synergies exist between this acquisition and our current Polish operations. This will complement our fabrication operation in Zawiercie, Poland, extending our reach to western Poland and eastern Germany while providing more base load for our minimill.”

The acquisition, which is subject to regulatory approval, is expected to close by the end of the year.

Commercial Metals and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel minimills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.