According to the MoU, AHMSA
will buy several hundred thousand tonnes of HBI, a pre-material for steel production, per year from the plant as of 2016.
Steel hopes to get grants from the Israeli government, since the mines are located in a development area and would be creating many jobs in this barren part of the country.
It will also make AHMSA
independent of the volatile Mexican scrap market.
Some companies like AHMSA
have recently managed to reach an agreement with some lenders.
defaulted on loan payments to creditors in April 1999, which caused strong concerns in the international financial markets.
The merger would have helped AHMSA
emerge from significant debt problems, which had caused the company to default on several loan payments in 1999 (see SourceMex, 1999-05-05 and 1999-06-09).
The EU accord is also expected to attract fresh capital into the Mexican steel sector, including the potential merger of Spain's Aceralia Corporacion Siderurgica with Mexican steel giant Grupo AHMSA
IMSA agrees to acquire AHMSA
Mexican steel manufacturer Grupo IMSA has agreed to acquire a majority share in rival Altos Hornos de Mexico (AHMSA
IMSA has laid down strict conditions to acquire AHMSA
, including the stipulation that AHMSA
and its parent company Grupo Acerero del Norte (GAN) received bankruptcy protection from a federal court after defaulting on loan payments totaling more than US$63 million during April (see SourceMex, 1999-05-05).
Ryerson Tull also finalized the terms of payment for the sale of its 50-percent stake in Ryerson de Mexico to AHMSA
accounted for more than one-fourth of Mexico's steel production last year.