In a statement Feb.18 sent to S&P Global Platts, Ahmsa said many of its customers were also facing lower production and declining sales due to the energy cutbacks. Ahmsa, which was already dealing with lower sales due to a drop in production since last year, was now further affected by delayed payments from customers, resulting in even lower capital flows to the steelmaker, it added.
Ahmsa has been suffering from financial difficulties for several years, having reported operating losses of Peso 2.2 billion ($109 million) in 2019, compared with Peso 859 million in 2018. It is hoping to step forward with a strategic alliance with Villacero Group, involving the former's financial rescue and consolidation of the companies' production capacity.
"At present, Ahmsa's iron ore plants and mines are in a shutdown protocol, without production and with the operation focused on the protection of fundamental equipment, in order to have the possibility of a rapid replacement once the supply of energy and fuel is normalized," CEO Luis Zamudio Miechielsen said.
The company further said it has prepared an intensive production plan to put into effect, in order to recover the lost volumes of steel production.
