Mexican steelmaker Grupo Simec announced a new business strategy to expand operations and increase steel capacity this year.
The company is examining opportunities to acquire steel plants in Mexico, the US, Canada, Latin America, and other global location, or even build new ones. It also intends to grow its installed steel capacity, Grupo said in a stement to Mexico’s stock exchange.
To enhance operational efficacy, the firm is investing in facilities located in Apizaco, Tlaxcala, and San Luis Potosí. It will also establish two new trading companies, one of which will be located in Mexico, and the other in abroad. The companies’ purposes will be to trade steel products, and buy raw materials and equipment to improve steel operations.
Grupo reported a net loss of 1bn Mexican pesos ($55.5mn) in 2019 after reporting net income of 3.5bn pesos the year prior.
The company’s sales decreased by 4pc to 34.1bn pesos in 2019. Its operating income also declined by 29 to 2.8bn pesos in 2019 compared to the year prior, and its EBITDA decreased by 23pc to 3.9bn pesos during the same period.