Simec is a steel producer that manufactures, processes, and distributes Special Bar Quality (SBQ) and structural long steel products. The company’s SBQ products serve automotive applications like axles and crankshafts, while its structural products, led by rebar, serve the construction sector. Simec operates two active segments: Mexico, which produces both SBQ and long steel, and Brazil, which focuses almost exclusively on rebar. Simec has idled its U.S. facilities. The company utilizes a mini-mill business model, employing electric arc furnaces to convert scrap metal into finished steel. This model makes profitability dependent on the spread between scrap costs and market steel prices, as scrap metal represents the company's largest manufacturing cost. Simec sells products through a network of independent distributors. The company’s growth strategy centers on organic capacity expansion, specifically in Brazil, and the acquisition of underperforming steel assets. Industrias CH holds a 76% controlling interest in the company.