Altos Hornos Restructures Board Composition and Generates Updated Operating Plan for 2019

MONCLOVA, Mexico, June 28, 2019 (GLOBE NEWSWIRE) -- Altos Hornos de México, S.A.B. de C.V., the largest integrated steel producer in Mexico (“AHMSA” or the “Company”), announces that at an extraordinary shareholders’ meeting held this past Monday, June 24, 2019, Mr. James Pignatelly was named Interim Chief Executive Officer. Mr. Pignatelli has been on the Company’s Board of Directors for several years.

Also at this meeting, the Board approved the reformulation of AHMSA’s operating strategy for the current year, as well as a financial plan that is aimed at strengthening the Company’s position.

Mr. Alonso Ancira Elizondo continues as Chairman of the Board of Directors.

A special governing committee was also created at this meeting to support Mr. Luis Zamudio as the Company’s role as Chief Executive Officer, as well as for the implementation of the new operating strategy, which includes a combination of efficiency measures and savings included in the financial plan. The new committee is comprised of the following members:

• Mr. James Pignatelli,

• Mr. Xavier Autrey, and

• Mr. Jorge Ancira

About AHMSA

Altos Hornos de México S.A.B. de C.V., the largest integrated steel producer in Mexico (based on tons of liquid steel produced), has two steel plants located in Monclova, Coahuila, and operates its own iron ore and metallurgical coal mines.  Its current nominal production capacity is more than 5.5 million tons of liquid steel per year, which is then transformed into a variety of finished products.  Additionally, AHMSA operates steam coal mines in Mexico.  It employs over 19,000 workers in steel plants, mines and services.

Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause AHMSA’s actual results to differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ materially from those in the forward-looking statements include but are not limited to regional, national or global economic, business, market and regulatory conditions and the following: (i) AHMSA’s ability to service its debt; (ii) competition and loss of market shares; (iii) changes in AHMSA’s relationships with customers and suppliers; (iv) increases in raw material costs or interruptions in supply; (v) declines in, and volatility affecting, global prices of steel; (vi) the existence or termination of free trade agreements, such as the North American Free Trade Agreement and foreign import duties and tariffs; (vii) foreign currency exchange fluctuations; (viii) the inherently dangerous nature of mining; (ix) work stoppages, strikes or other labor disputes; (x) changes in Mexican economic policy, as well as currency instability; (xi) inaccuracies in AHMSA’s estimates of economically recoverable coal reserves; and (xii) AHMSA’s dependence on certain raw materials.