In a statement, Grupo Simec said it is acquiring ArcelorMittal’s Cariacica and Itauna mills in Brazil, along with the wire drawing equipment, and will lift its crude steel capacity to 7.5 million metric tons annually.

The Cariacica plant can produce 600,000 metric tons of liquid steel per year and 450,000 metric tons of rolled steel products. The plant produces light structural rods and profiles.

The Itauna plant can annually produce 120,000 metric tons of light structural profiles and rods. The wire drawing equipment has the capacity to make 120,000 metric tons. It will be installed at the company’s Pindamonhangaba, Sao Paulo, plant during the second half of the year.

Grupo Simec did not disclose a purchase price.

The deal arises from ArcelorMittal Brazil’s acquisition of Brazilian long products producer Votorantim Siderurgia SA. The deal makes ArcelorMittal the country's largest long products producer.

Competition regulators approved the merger on the condition that ArcelorMittal divest certain assets.