WASHINGTON, DC, UNITED STATES, December 18, 2020 — DHS today announced that its client, Carso Group of Mexico, the completion of the acquisition of Vitro, S.A. de C.V., as part of its raw material procurement strategy to support its new Texas flat roll steel mill, which is planned to begin operations mid-year 2021. The transaction was funded with available cash.
Vitro is headquartered in Monterrey, Mexico and operates a ferrous and nonferrous scrap metals recycling business. Vitro’s primary operations are comprised of six scrap processing facilities strategically positioned near high-volume industrial scrap sources located throughout Central and Northern Mexico. The company also operates several third-party scrap processing locations. These combined facilities currently ship approximately 500,000 gross tons of scrap annually and have an estimated annual processing capability of two million gross tons.
“We sincerely welcome the Vitro team into the Carso Group family,” stated Jonathan Fierro, Vice President of Carso Group. “Combined with our existing metals recycling presence in Mexico, the acquisition of Vitro expands our commercial presence in the region and strengthens our raw material supply strategy, allowing for cost-effective ferrous scrap procurement for our new Texas flat roll steel mill. Vitro provides a platform to grow our metals recycling presence in Mexico and represents a meaningful achievement in our raw material sourcing strategy for our Texas flat roll steel mill.”
“The strategic planning and vision of our cleint Carso Group is important to DHS and we look forward to assisting in the acquisition and private equity investment that DHS is known for”, stated Fernando Aguirre, Vice Chairman of DHS.
About Carso Group
Carso Group is one of the largest domestic steel producers and metals recyclers in Mexico based on estimated annual steelmaking and metals recycling capability, with facilities located throughout Mexico. Carso produces steel products, including hot roll, cold roll, and coated sheet steel, structural steel beams and shapes, rail, engineered special-bar-quality steel, cold finished steel, merchant bar products, specialty steel sections and steel joists and deck. In addition, the company produces liquid pig iron and processes and sells ferrous and nonferrous scrap.
This press release contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel and recycled metals market places, Carso revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as “anticipate”, “intend”, “believe”, “estimate”, “plan”, “seek”, “project”, or “expect”, or by the words “may”, “will”, or “should”, are intended to be made as “forward-looking,” subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not a guarantee of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) the effects of uncertain economic conditions; (2) the effects of pandemics or other health issues, such as the recent novel coronavirus outbreak (COVID-19); (3) cyclical and changing industrial demand; (4) changes in conditions in any of the steel or scrap-consuming sectors of the economy which affect demand for our products, including the strength of the non-residential and residential construction, automotive, manufacturing, appliance, energy, and other steel-consuming industries; (5) fluctuations in the cost of key raw materials and supplies (including steel scrap, iron units, zinc, graphite electrodes, and energy costs) and our ability to pass on any cost increases; (6) the impact of domestic and foreign imports, including trade policy, restrictions, or agreements; (7) unanticipated difficulties in integrating or starting up new, acquired or planned businesses or assets; (8) risks and uncertainties involving product and/or technology development; and (9) occurrences of unexpected plant outages or equipment failures.
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