The controller of Grupo Acerero (GASA), Grupo Fonderia suffered the consequences of the economic sanction of $12.46 million imposed by the United States Department of Commerce for dumping of rebar on its subsidiary GASA Steel. That fine forced the company to begin insolvency proceedings under Chapter 11 of the United States Bankruptcy Code, the company recently informed its investors.
“GASA Steel, LLC, a subsidiary of the company, in 2022 initiated an insolvency process under Chapter 11 of the Bankruptcy Code of the United States of America for commercial operations,” according to information from Grupo Fonderia, seen by SteelOrbis.
This amount of the fine is equivalent to 3.0 percent of GASA's net sales in the first half of the year, according to a brief calculation by SteelOrbis with data from the company's financial report.
GASA Steel is one of the three Grupo Fonderia companies incorporated in the United States of America, the other two companies are Galyp International and Galyp Trading. GASA Steel has its headquarters in San Antonio, Texas.
GASA is the fifth largest rebar producer in Mexico with a market share of 11.6 percent in 2023, surpassed by Simec's 11.8 percent, DeAcero's 16.8 percent, Ternium's 18.5 percent and the largest 18.9 percent rebar producer in Mexico, ArcelorMittal.
Grupo Fonderia is in the process of constructing a new mini mill with 650,000 metric tons (mt) of annual slab production capacity in its home state of San Luis Potosí. According to the plans told to SteelOrbis, in April of next year they will begin technical production tests and in July commercial production of this input that is transformed into rolled plate could begin.