Grupo Simec Announces the Acquisition of Bluff City Assets

Mar 29, 2011, 18:01 ET from Grupo Simec, S.A.B. de C.V.

MEXICO CITY, March 29, 2011 /PRNewswire/ -- Grupo Simec, S. A. B. de C. V., (“SIMEC”) informs to its investors that its subsidiary Republic Engineered Products Inc., ("Republic") acquired assets of Bluff City (BCS), consisting of a heat treatment facility and cold drawn steel bars. These facilities are located in Cleveland, Ohio and Memphis, Tennessee, USA. With this acquisition, Republic enhances and complements its capacity production of special bars (SBQ), providing them also added value.

Also, Simec announced that its plants located in San Luis Potosi, SLP and Apizaco, Tlaxcala, Mexico have completed their investment programs in their melt shops. With the investment realized in San Luis Potosi plant, the installed capacity increased to one million tons of billet, for the production of rod, wire and derivatives. Also, this investment allows savings in energy costs. With the investment in the Apizaco, Tlaxcala plant, the installed capacity increased to five thousand tons of billet, which gives self-sufficiency of billet for its mills.

With these investments, Simec reaches above 5 million tons installed capacity annual of steel production in all of its plants.

Adolfo Luna

SOURCE Grupo Simec, S.A.B. de C.V.