ICH analyzing financing options for new Apizaco plant

Mexican steelmaker Industrias CH (ICH; BMV: ICHB) is analyzing its options on how to raise financing for its new Apizaco plant in Tlaxcala state, newspaper El Norte reported. The Apizaco plant is being run by ICH's subsidiary Simec and produces steel products primarily for the automotive industry. It was acquired along with the Cholula plant in Puebla state for US$150mn in August this year. Among the options ICH is considering is taking out a loan or raising the money through a share offering on Mexico City's stock exchange (BMV) in the first quarter of 2005, which it is hoped would raise US$250mn. The possibility of a share offering is not that remote, according to El Norte. Between 23% and 24% of ICH is currently traded on the market, while about 14% of Simec is held by public investors through American Depositary Receipts (ADRs) issued on the New York stock exchange. ICH was acquired by Rufino and Sergio Vigil in 1991. It has a total of six steelmaking plants in the cities of Mexicali, Monclova, Matamoros, Guadalajara, Tlalnepantla and Ecatepec, while Simec has two scrap foundries in Guadalajara and Mexicali.