Grupo Simec orders to Danieli a new greenfield minimill for SBQ products.

Grupo Simec has contracted Danieli to install a state-of-the-art green-field mini-mill facility in the city of Apizaco located in the State of Tlaxcala in Mexico. This 600,000 Tons/year plant will produce Special Bar Quality (SBQ) Large Round Blooms, large-diameter Bars and Wire Rod. The new facility will be installed in close proximity to an existing Grupo Simec Special Bar Quality (SBQ) products mini-mill facility that produces 400,000 tons/year of small-diameter steel bars and flats.

This will be the first complete greenfield mini-mill for specialty steel built in Mexico in recent years. The facility boasts specialized world-class technology including automation equipment that assists in producing high-quality steel grades to guarantee a globally competitive production cost (Capex + Opex).

The main features of the Danieli-contracted mini-mill facility include “Full-Advanced Technology” from scrap processing to steel melting, secondary refining, round billet casting, hot-rolling, on-line heat treatment of long products, in-line cold finishing bar inspection facilities as well as an advanced wire rod line. The new green-field steel complex will incorporate all auxiliary plants and services (i.e.: the main electrical substation, WTP, compressed air, workshops, laboratories, etc.). Danieli Automation will also supply all electrical components and an advanced level 1 and 2 automation system for the entire plant.

Grupo Simec’s overall investment is estimated at 600 Million USD, and the project will be fully funded by Grupo Simec’s internally generated Cash Flow. The plant start-up is anticipated by the end of 2017.

With this new investment, Grupo Simec continues to focus its strengths on improving its leading position as North Americas largest producer and processor of Special Bar Quality steels and strengthens its commitment to exceeding its customer’s needs in the Automotive, Energy, Capital Goods Industries among many others, supporting the significant growth occurring in Mexico and the NAFTA region.