Over the past several years, Phoenix Services has continued to expand and diversify our customer base. We are pleased to have been awarded a ten-year contract at Gerdau Rancho Cucamonga, which started on September 1, 2017.
Our new westernmost location, the Gerdau Rancho facility sits 40 miles east of Los Angeles, California. The Rancho Cucamonga mill has a capacity to produce a large amount of rebar on an annual basis, but it is currently not quite operating at that capacity. Gerdau recently broke Rancho out to perform as a separate business unit, and the change has allowed the facility to properly service the Pacific coast market – the mill has been running full out since we began services in September. Our placement in the Rancho Cucamonga mill is an exciting opportunity to expand our reach within the Gerdau group, both within the US and in South America where Gerdau holds a significant presence. It also allows us strategic placement to begin an expansion of operations along the pacific coast.
The site has been running smoothly and successfully for the first few months of our contract; we look forward to continuing to provide world class services at our newest location for many years to come.