Mexican steelmaker Altos Hornos de Mexico (Ahmsa), may stop its operations after it recorded a net loss of MXN15bn ($702.6mn) in January-September 2020.

 

Ahmsa has lost more than three-fourth of its share capital, which according to the Mexican Law of Mercantiles Societies, could be the cause of the firm’s dissolution, its Q3 2020 earnings, reported by Mexico’s stock exchange (BMV) on October 28 noted. The company may look to alternate funding or financing options to keep the ball rolling.

 

Ahmsa posted a net loss of MXN2.1bn in Q3 2020, compared to a net loss of MXN1.79bn in Q3 2019. Net sales declined by 50.7pc to MXN5.8bn over MXN11.8bn in the period under review. However, the company did not disclose its crude steel production volume nor sales volume.

 

This week, Ahmsa told Davis Index that it is currently operating at 35pc of its capacity. The steelmaker announced on June 23 that its subsidiary Minera del Norte laid off 2,400 workers after the Federal Electricity Commission (CFE) canceled a contract to purchase coal.

 

Mexico saw a reduction in its crude steel output by 3.9pc to 1.40mn mt in September, from 1.45mn mt produced in the same month of 2019, according to the latest data by the World Steel Association (worldsteel).

 

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