Nemak incorporated two plants in Canada During the first half of 2000, the corporation
had an excellent performance and posted record EBITDA.
Nevertheless, in the second half of the year, the drop in international
steel and petrochemical prices, and a huge increase in the cost of energy,
affected the financial results of the company.
ALFA decided to reconfigure its portfolio by focusing on those of its businesses
with the greatest prospects for growth and profitability: PTA coated steel,
nylon and Lycra®, food and auto components. Nemak incorporated two
aluminum auto components plants in Canada acquired from Ford.
DAK
Americas plant, Fayetteville, S.C.
ALFA began the reconfiguration of its portfolio The year 2001 was difficult for ALFA. The demand
and prices for steel and petrochemicals continued to fall, affecting the
company's financial results.
The auto components business did not suffer as much thanks to the startup
of new production programs and the addition of the plants of Canada. In
contrast, the food business had a record year.
ALFA began the reconfiguration of its portfolio of businesses. It sold
its 50% stake in Enertek and the 100% of Total Home. ALFA acquired two
PTA/ Fiber sites and one PET resins plants in the US, which helped to become
the second largest PTA producer in the world. ALFA also established a joint
venture with ConAgra of the US to develop a prepared food business.
Hylsamex’s
minimill plant, Monterrey.
Hylsamex debt was refinanced A slight improvement of the Mexican and U.S. economies
and the company's greater capacity to capitalize on market opportunities,
allowed ALFA to improve its results in 2002, increasing revenue, net income
and EBITDA.
The debt of Hylsamex's subsidiaries was successfully refinanced, increasing
its financial flexibility and improving ALFA's consolidated financial condition.
During the year, ALFA refined its portfolio strategy, confirming PTA, food
and auto components as key businesses and coated steel, and added PET.
Nemak’s
plant in the Czech Republic.
An exceptional year for ALFA In 2003, ALFA's strategic businesses continued
to strengthen, with Sigma's acquisitions in Central America and the Caribbean,
the expansion of PET capacity in the US and of Sigma in Mexico, and the
star-up of the Nemak plant in the Czech Republic.
Moreover, the decision was made to divest Hylsamex from the business portfolio.
This represents a big step in the reconfiguration process ALFA has been
working since 2001.
Chen's
Products
The best year in ALFA's history Thanks to increases in sales volume and prices,
plus savings in costs and expenses, ALFA reported the best year ever (without
Hylsamex and under comparable basis). EBITDA reached record levels. The
financial condition was strengthened. Furthermore, the subsidiary companies
reinforced their excellent strategic position.
Alpek worked to increase capacity in expandable polystyrene and polypropylene.
Sigma formalized an association with Chen which allowed it to achieve the
leadership position in the Mexican cheese market. It also expanded its
presence in the Caribbean with an acquisition in the Dominican Republic.
