The smooth ER is important in the synthesis of lipids, such as cholesterol and phospholipids, which form all the membranes of the organism. In addition it is important for the synthesis and secretion of steroid hormones from cholesterol and other lipid precursors. In addition, it is involved in carbohydrate metabolism. For instance, the final reaction of gluconeogenesis occurs in the lumen of the smooth ER since it contains the enzyme glucose-6-phosphatase. This enzyme catalyzes the production of glucose from glucose-6-phosphate.