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Mexico's Simec in talks to buy Gerdau's Tultitlan mill

Friday, 29 September 2017

Mexican longs steelmaker Simec is in talks to acquire Gerdau's Tultitlan mill in Mexico City, a source close to the situation told S&P Global Platts Thursday.

"The negotiations are expected to be concluded by mid-October," according to the source, who could not provide any details on the value of the deal.

Gerdau said it had no comment. But, it added in an email, the company "continues with its strategy of evaluating its assets, aiming to focus its efforts on those that generate greater profitability."

The 500,000 mt/year Tultitlan plant is able to produce rebar steel and profiles, according to Gerdau. The Brazilian group acquired the complex in 2006 for $259 million from Feld Group.

In Mexico, Gerdau currently operates two other production facilities under the Gerdau Corsa brand -- the Sahagun and La Presa mills.

Simec did not respond to a request for comment until the end of this edition.

The group currently owns steelmaking sites in Guadalajara in Jalisco state, Mexicali in Baja California, Apizaco in Tlaxcala and San Luis Potosi as well as scrap metal processing plants. The company also owns Republic Steel, which has eight manufacturing sites in the US and Canada.

-- Bruno Martins

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