Grupo Simec will invest US $600 million in a new plant producing special bar quality (SBQ) steel in Mexico.These steels may contain different percentages of aluminum, nickel, chrome and other alloy elements, and these alloys cause the steel to take on special characteristics, or “grades”. Based on the shape of the final product, the products are classified into round, square and hexagonal bars.
The facility will be located close to Simec’s existing SBQ plant, which makes products primarily for the automotive, energy and capital goods sectors. The products from the special bar quality steel line adapt to the clients’ specific requirements, including those related to chemical composition, malleability, hardness, ductility and steel surface condition. ICH is the only producer of this material in Mexico, with a market participation of approximately 35%; the rest is imported. In United States it has an approximate market participation of 20%.