Germany-based steelmaker Salzgitter AG has announced the acquisition of Mexican pipe producer Bresmex Tuberia S.A. de C.V by Salzgitter Mannesmann Precisión GmbH - a move which will enable the group to have its own production facilities in the country, thus reinforcing its position in the high-growth North American market. However, the financial value of the transaction has not been disclosed.
Bresmex Tuberia S.A. de C.V, located in the city of Guadalajara, mainly manufactures welded drawn precision steel tubes and focuses especially on high-grade shock absorber tubes for the automotive industry. The facility in question went into operation last April and currently has an annual production capacity of 12,000 tons of precision tubes.
In a statement regarding this latest acquisition, Salzgitter said that the name of the company would later be changed to Salzgitter Mannesmann Precisión S.A. de C.V.