Grupo Simec, S.A.B. de C.V., the main subsidiary of Industrias CH, S.A.B. de C.V., has executed an agreement to acquire all the shares of Corporacion Aceros DM, S.A. de C.V. and certain of its affiliates.
Grupo San is a long products steel mini-mill and the second-largest corrugated rebar producer in Mexico. Grupo San's operations are based in San Luis Potosi, Mexico. The company produces around 700,000 tons of finished products a year.
With the acquisition, ICH and Simec will be the second-largest producer of rebar and the largest steel producer in Mexico, with a production capacity of approximately 4.5 million tons of liquid steel and 3.8 million tons of finished products.
With this strategic acquisition, ICH and Simec will achieve a more diversified product mix and sales mix, with 50 percent of sales in Mexico.