BAL is a diversified group of five independent, premier
Mexico-based organizations: Industrias Peñoles (natural resources);
Grupo Palacio de Hierro; (retail); Grupo Nacional Provincial (insurance);
Valores Mexicanos-Casa de Bolsa (financial services); and Credito
Afianzador (bonding). We have now entered our second century of
business and we are proud of our achievements: 23,000 employees,
over $4 billion of assets, and over $2 billion dollars in sales.
This represents significant performance and growth for an organization
that developed from three mines in the Mexican State of Durango
in 1887. This brief overview of the Grupo BAL has been prepared
to explain our main business activities and our commitment to the
values of integrity, hard work and professionalism.
Minas Peñoles, S.A. de C.V., is Mexicos premier
natural resources group. It is Mexicos leading producer of
silver, gold, zinc and lead concentrates. The company takes a long-term
focus. Exploration is selective in order to identify mineral deposits
which will result in optimum efficiency of operations. Emphasis
is on energy savings and preventive maintenance. To meet world standards,
older facilities are replaced, equipment modernized and employees
trained in advanced technologies. The companys investment
in modern technology has resulted in the production of the highest
grade ores and minerals. Minas Peñoles participates with
many leading foreign companies in joint ventures, including AMAX
(USA), Dowa Mining Company (Japan), Homestake Mining (USA), Otokumpu
(Finland) and Newmont Gold (USA).
Met-Mex Peñoles, S.A. de C.V., converts minerals and
concentrates mined by the Peñoles Mining Group and other
Mexican and foreign producers into refined gold, silver, zinc, lead,
cadmium, cadmium oxide and bismuth. Peñoles is the worlds
leading producer of refined silver. The company also produces ammonium
sulfate, antimony trioxide, sulfuric acid and antimonial lead. The
companys products are used as raw materials in multiple industries,
the most significant of which are photography, jewelry, steel, batteries,
pharmaceuticals, cosmetics and the metallurgical and electronic
industries. Met-Mex is one of Latin Americas important nonferrous
metallurgical complexes. It consists of a lead smelter, an electrolytic
zinc plant, a lead-silver refinery, two sulfuric acid plants, and
cadmium, bismuth, ammonium sulfate, antimony trioxide, cadmium oxide
and liquid sulfur dioxide plants.
The Industrial Chemicals Division operates four companies,
all in organic chemicals, producing, principally, magnesium oxide
and sodium sulfate from brines; also magnesium oxide from sea water
and chemical lime. Magnesium oxide is sold both commercially and
used as a raw material source for the Refractories Division. Also
produced are fine chemical products and fertilizers, from raw materials
manufactured by Met-Mex Peñoles. The Divisions major
operation is Quimica del Rey, S.A. de C.V., the worlds largest
producer of sodium sulfate which is used in the detergent, glass
and refractory industries.
The Refractories Division is comprised of six operating companies
producing basic silica-aluminum, high alumina and dolomitic refractory
materials and ceramic fibers. It also provides installation services
for anti-acid linings and refractory materials and chimney construction.
The division is known for the quality of technical support it provides
Refractarios Mexicanos, S.A. de C.V., is Mexicos premier
manufacturer of refractory materials designed to withstand destructive
conditions under high temperatures. Refractory products are utilized
by the steel industry in blast furnaces, electric furnaces and basic
oxygen furnaces; by the cement industry for rotary kilns; and by
the copper and glass industries. Products are in both brick and
granular form. The source of raw material is principally magnesium
oxide produced by the Industrial Chemicals Division.
El Palacio de Hierro is one of Mexico City's most prestigious
department stores. It has seven stores strategically located and
more stores are on the drawing board. El Palacio de Hierro serves
a population of over 20 million. It presents, to its customers,
the worlds most exclusive and acclaimed international collections
of clothing, accessories, furnishings and home appliances. These
stores carry designer clothing from Ungaro, Yves St. Laurent, Givenchy,
Aquascutum, Missoni, Mondi, Privilegio, Ferre, Baldazari, Nicole
Miller, Lagerfeld and Cabaleiro. Also represented are the most renowned
fragrance and cosmetics firms including Chanel, Lancôme and
Estee Lauder. El Palacio de Hierro has maintained its reputation
for quality, vision and service for more than one hundred years.
The Grupo BALs international marketing operations are
centralized in Stamford, Connecticut through BAL Holdings, Inc.
BAL Holdings, through its operating subsidiaries in the USA, manages
the export sales of silver, zinc, lead and industrial chemicals.
The company handles the global purchasing and merchandising activities
for the El Palacio de Hierro department stores as well as fulfilling
equipment requirements for the Industrial Group.
Grupo Nacional Provincial was formed in 1968 as the result
of the merger of two established, prestigious companies: La Nacional
Compañía de Seguros, founded in 1901, and Seguros
La Provincial, established in 1936. This merger has allowed Grupo
Nacional Provincial to offer to the public the largest variety of
insurance products, including pension plans. Grupo Nacional Provincial
has, since its inception, taken a leadership position in the Mexican
insurance market and has attained, by all measures, pre-eminence
in the insurance sector. Grupo Nacional Provincial has continued
to increase its market share. It attained 14% of the market in 1975
and this has since grown to 20%. To accomplish its goals, Grupo
Nacional Provincial has based its strategy on the following:
- A tradition of integrity with the assurance of good value.
- The development of a high quality and professional sales force.
- The design of products which allow the company to maintain a
leading position in all lines of business.
- Technological development supported by the most advanced operational
- An administrative philosophy resultant from client satisfaction.
- Decentralization of its operation with the support of over
40 service offices, 3,000 employees and 4,250 sales agents. Grupo
Nacional Provincial maintains a substantial level of solvency.
It maintains close relations with the most important insurers
and reinsurers in the U.S., Europe and Japan.
Crédito Afianzador, S.A. Compaía Mexicana de Garantĺas
provides fidelity, judicial, bid, performance, supply, advance payment,
excise and leasing bonds in the national and international markets.
In terms of sales, Crédito Afianzador, S.A. is the third
largest bonding participant in Mexico. The Companys main objective
is to change with the historical evolution of the country and to
adapt to its needs. Crédito Afianzador has the people, products,
technologies and strategies to compete successfully in the development
of the bonding industry in Mexico.
Valores Mexicanos-Casa de Bolsa is an independent, multi-faceted
financial services firm. It provides debt and equity financing to
Mexican corporations. It places securities, both fixed income and
equity instruments, among institutional investors, corporate accounts
and high net worth individuals. In addition, through a sister leasing
company, it provides fixed asset financing in the form of equipment
and real estate leasing.
In Mexico, Valores Mexicanos reputation is particularly noteworthy
in the following sectors: construction and cement; retail department
stores and shopping centers; and in the financial sector itself.
The company has its own mutual funds specializing in construction
and retail. For the banking community, Valores Mexicanos markets
bank certificates of deposit.
As Mexico meets the challenges of both increased international
trade and its own technological development, Valores Mexicanos is
committed to bringing enhanced services to both existing clients
and to those seeking new opportunities.