Question-and-Answer Session
Operator
(Operator Instructions). Our first question comes from Michael Gambardella from JPMorgan. Your line is now open.
Michael Gambardella - JPMorgan
I had two questions. One, with the Arizona micro mill, the rebar mill, do you have any licensing agreements with the equipment manufacturer that would prohibit other people from building the identical mill in the U.S.?
Murray McClean
Mike, are you still with us?
Michael Gambardella - JPMorgan
Yes.
Bill Larson
Okay. We heard it.
Murray McClean
Mike, the answer on the licensing is no, but we do have some protection in the area of where the mills are, in terms that the radius [action] from not just a mill in Arizona, but from some of our other mills, too.
Michael Gambardella - JPMorgan
But it wouldn't preclude someone from using the same technology and say, just arbitrarily saying, putting a mill in the northwest?
Murray McClean
That's correct. Yeah.
Michael Gambardella - JPMorgan
Okay. And then, okay. And then second question, on the SAP, now that it is complete, how do you measure the benefits from that? And will you be giving us an update on that?
Murray McClean
It’s measured actually in two ways. One is in terms of processing efficiency, how many people can do, how many transactions, the other, though, is going to be harder to dislodge from our supply chain, initiatives because they are using SAP as the tool that enables them to get the information to negotiate with vendors and our various operators get the information to be able to fine tune certain processes. So, the answer in terms of update is, I will be talking about supply chain benefits. In fact, I have slides on that I will present, next week. And that is how you’ll find out about the SAP benefits.
Michael Gambardella - JPMorgan
Okay and then just one last question on the Arizona mill. What do you expect on volumes rolling out for calendar 2010.
Murray McClean
Yeah, it has a nameplate capacity of 284,000 tons of rebar, we would anticipate this year, rolling and shipping 145,000 to 150,000 tons, so about half of its capacity. And it's not so much Mike that we're running at a half capacity. By the end of the year it will probably be running flat out, but we're doing trials right now.
Michael Gambardella - JPMorgan
Right.
Murray McClean
So it will start off slow and then pick up towards the second half of the year.
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