The Gerdau Group acquires steel mil in Mexico

Gerdau will invest US$ 259 million in the acquisition of all the shares of the Feld Group, the parent company of Siderúrgica Tultitlán

Today (March 28, 2006), the Gerdau Group signed a contract for the purchase of all the shares of the Feld Group, which is the holding company of the Siderúrgica Tultitlán, a plant that produces rebars and profiles in Mexico. The Siderúrgica Tultitlán is located in the Mexico City metropolitan area. It has 550 employees and an annual installed capacity of 350,000 metric tons of steel and 330,000 metric tons of rolled products. Its production is mainly directed to the domestic market. With the mill’s expansion plan underway, which should be finished by the end of the current year, its production capacity will reach 500,000 metric tons of steel and 430,000 metric tons of rolled products. “This acquisition is the landmark of the Gerdau Group's entrance into the Mexican market and it means another step towards the strategy of achieving profitable growth and expansion in the Americas. Besides, it reinforces the Group’s position as a consolidating agent in the international steel sector,” said André Gerdau Johannpeter, CEO of the Gerdau Group. Mexico is the 3rd largest steel producer in the Americas, just behind the United States and Brazil. In 2006, the country produced 16.3 million metric tons of steel. The transaction involves an amount of US$ 259 million that will be funded from the Gerdau Group’s cash generation. The acquisition is subject to the approval by the regulatory agencies of business competition in Mexico.
 
 
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