Mexican steelmaker Grupo Simec has reportedly agreed to acquire a Brazilian long steel rolling mill known as Itaúna, according to a media report by Valor.
Grupo Simec did not disclose the transaction value. However, Valor said Grupo Simec will pay for the Itaúna long steel rolling mill monthly installments until August 2022, when the asset should be transferred to the Mexican steelmaker.
Grupo Simec had already been operating the Itaúna rolling mill since May 2018, under a lease agreement. The mill has a 100,000 mt/year rebar and steel sections capacity.
Grupo Simec has also owned a mill in the Brazilian city of Pindamonhangaba, in the state of São Paulo, since 2015, and a second mill in Cariacica, in the state of Espírito Santo, purchased from ArcelorMittal in 2018.
The Itaúna mill now adds to Grupo Simec’s portfolio of three plants in Brazil, along with its Mexican business.