Mexican steelmaker Grupo Simec will continue investing in its Apizaco facilities in Tlaxcala and San Luis Potosí to improve operations and increase its installed steel capacity.
The company disclosed neither the amount of investment nor capacity increment but noted that it will analyze the opportunities to acquire or construct steel plants in Mexico, US, Canada, and other parts of America, according to a statement made to Mexico’s stock exchange.
Steel sales in H1 2020 decreased by 1.7pc to 1.16mn mt from 1.18mn mt during the same period last year. Sales value also declined by 13.5pc to MXN16bn ($725mn) from MXN18.5bn during the same period. However, the company did not disclose its crude steel production volume.
In Q2 2020, sales fell by 8.7pc to 540,000mt, from 592,000 mt in the same quarter last year. Sales value fell by 16pc to MXN7.6bn in the second quarter, from MXN9bn in Q2 2019. Domestic sales declined by 25pc to MXN3.5bn in Q2 2020 from MXN4.7bn in the prior-year period, while international sales also dipped 5pc to MXN4bn, from MXN4.3bn in the same period under comparison.
Grupo Simec reported a net profit of MXN546mn in the quarter-end June 30, 2020, up by 45pc from $377mn in Q2 2019. EBITDA reached MXN1.3bn in Q2 2020, a 12pc increase from MXN1.1bn in Q2 2019.
($1 = MXN22)