Peru’s Aceros Arequipa has acquired a 96pc stake in the steel company Comfer, which produces nails, wire, and steel mesh.
The transaction, which cost Arequipa $16.8mn, will allow the company to expand its operations in the domestic market, according to media reports. The financial and legal aspects of the agreement were led by LXG Capital and Payet, Rey, Cauvi & Pérez, respectively, Aceros Arequipa said in a statement without disclosing further details.
Aceros Arequipa will commence production at its new Pisco mill between April and May this year to feed the demand for the Latin American construction market. The new mill will be able to produce 1.25mn mt of steel per year and is expected to reach full capacity in November 2021. The mill will export products to Brazil, Mexico, Colombia, Bolivia, and Chile after reaching full capacity.
Aceros Arequipa’s sales revenue fell by 9.3pc to PEN2.8bn ($769mn) in 2020, from PEN3.1bn reached in 2019.
Peru’s crude steel production declined by 45.4pc to 671,000mt in 2020, from 1.23mn mt the prior year, according to the latest figures released by the World Steel Association.