Mexican steel company Grupo Simec, with operations in Mexico, the United States and Brazil, said it has a "very solid" financial situation with liquid resources in cash for more than $1.1 billion to invest, a figure that represents an increase of 177 percent compared to the cash registered in June of last year, according to information from the company.
"Grupo Simec is in a very solid situation, without debts with the financial system, with approximately $1,113 million in cash, investing in the expansion of the plants in Apizaco, Tlaxcala, San Luis Potosí and Brazil, and for the normal operation of the group," the company said in a report sent to the Mexican Stock Exchange.
That figure contrasts with the $401 million in cash reported up to June of last year. Although, said amount remains unchanged compared to that announced in December 2022 and last March.
This financial strength of the Mexican company, said the company, occurs at a time of a "drastic contraction in the demand for steel products due to global economic conditions" that translates into a "significant credit and liquidity restriction; devaluation of the Mexican peso against the dollar; and uncertainty in general."
The company also reported that among its main objectives is "to assess the opportunities for the acquisition of steel companies in Mexico and abroad." Geography is important for the investment priority, the company said; in the first place are companies in Mexico, in second place those located in the United States and Canada, in third priority those of the rest of the American continent, and in fourth place in the rest of the world.