<SEC-DOCUMENT>0000891092-13-008076.txt : 20140107
<SEC-HEADER>0000891092-13-008076.hdr.sgml : 20140107
<ACCEPTANCE-DATETIME>20130925125836
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000891092-13-008076
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20130925

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GROUP SIMEC SA DE CV
		CENTRAL INDEX KEY:			0000887153
		STANDARD INDUSTRIAL CLASSIFICATION:	STEEL WORKS, BLAST FURNACES  ROLLING MILLS (COKE OVENS) [3312]
		IRS NUMBER:				000000000
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS 601
		CITY:			44910 GUADALAJARA JA
		STATE:			O5
		ZIP:			10022

	MAIL ADDRESS:	
		STREET 1:		CALZADA LAZARO CARDENAS
		CITY:			GUADALAJARA JALISCO
		STATE:			O5
		ZIP:			999999999
</SEC-HEADER>
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<TYPE>CORRESP
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<P STYLE="font: small-caps 12pt Times New Roman, Times, Serif; margin: 12pt 0 6pt; text-align: center">Simpson Thacher &amp; Bartlett
llp</P>

<P STYLE="font: small-caps 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center">425 Lexington Avenue</P>

<P STYLE="font: small-caps 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center">New York, N.Y. 10017-3954</P>

<P STYLE="font: small-caps 8pt Times New Roman, Times, Serif; margin: 0 0 3pt; text-align: center">(212) 455-2000</P><BR>


<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3pt 0 0"></P>

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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 3pt 0 0">&nbsp;</P>

<P STYLE="font: small-caps 8pt Times New Roman, Times, Serif; margin: 0 0 6pt; text-align: center">Facsimile (212) 455-2502</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding-right: -40.4pt; font: small-caps 8pt Times New Roman, Times, Serif">Direct Dial Number</TD>
    <TD STYLE="width: 50%; padding-right: -40.4pt; font: small-caps 8pt Times New Roman, Times, Serif; text-align: right">E-Mail Address</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="font: small-caps 8pt Times New Roman, Times, Serif; padding-right: -40.3pt; padding-bottom: 6pt">(212) 455-7433</TD>
    <TD STYLE="font: small-caps 8pt Times New Roman, Times, Serif; padding-right: -40.3pt; padding-bottom: 6pt; text-align: right">dwilliams@stblaw.com</TD></TR>
</TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 12pt 0 24pt 247.7pt; text-indent: 35.3pt; background-color: transparent">September
24, 2013</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Mr. John Cash</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Branch Chief</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, NE<BR>
Washington, DC 20549</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">Re:</TD><TD>Grupo Simec, S.A.B. de C.V. Form 20-F for year ended December 31, 2012</TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in; background-color: transparent"><U>Filed
May 15, 2013, File No. 1-11176</U></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0in; background-color: transparent">Ladies
and Gentlemen:</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.4pt; background-color: transparent">On
behalf of Grupo Simec S.A.B. de C.V. (the &ldquo;<U>Company</U>&rdquo;), we are writing to respond to the comments set forth in
the Commission&rsquo;s staff&rsquo;s comment letter dated August 19, 2013 (the &ldquo;<U>comment letter</U>&rdquo;) relating to
the above-referenced annual report (the &ldquo;<U>Annual Report</U>&rdquo;) of the Company originally submitted on May 15, 2013,
pursuant to the Securities Act of 1934, as amended. For convenience of reference, we have reproduced below in italics the text
of the comments of the Staff. The responses and information described below are based upon information provided to us by the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Form 20-F for the year
ended December 31, 2013 </U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Item 5. Operating and Financial
Review and Prospects, page 45</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">1.</TD><TD><I>We note your disclosure that in 2010, 2011 and 2012, you did not purchase coke or pellets since your Lorain, Ohio blast
furnace facility was idle during that period. Please tell us, and revise future filings to disclose, the net carrying value of
idled assets. Also, to the extent material, please tell us, and clarify in future filings, how you assess idled assets for impairment.</I></TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">In
response to the Staff&rsquo;s comment, the net carrying values of the idled blast furnace facility and coke inventory were approximately
$11.4 million and $117.5 million, respectively, at December 31, 2012. The Company intends to include disclosure similar to the
following in future filings:</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; background-color: white">&ldquo;In December 2008, we
temporarily idled our Lorain, Ohio, USA blast furnace facility due to economic conditions. The blast furnace remained idled through
2012. At December 31,</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; background-color: white">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; background-color: white"></P>

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<TR STYLE="vertical-align: top; background-color: white">
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Beijing</FONT></TD>
    <TD STYLE="padding-right: -4.85pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Hong Kong</FONT></TD>
    <TD STYLE="padding-right: -4.3pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Houston</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">London</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Los Angeles</FONT></TD>
    <TD STYLE="padding-right: -3.65pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Palo Alto</FONT></TD>
    <TD STYLE="padding-right: -6.35pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">S&atilde;o Paulo</FONT></TD>
    <TD STYLE="padding-right: -7.8pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Seoul</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Tokyo</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><FONT STYLE="font: small-caps 9pt Times New Roman, Times, Serif">Washington, D.C.</FONT></TD></TR>
</TABLE>




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<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 6pt 0 0 0.5in; background-color: white">2012, we had property, plant
and equipment with a net book value of approximately $11.4 million pertaining to the blast furnace facility. The blast furnace
assets are idled temporarily, and accordingly depreciation expense has continued to be recorded as a period cost. Additionally,
we had $117.5 million of coke inventory on hand at the Lorain facility which the Company would only use as an input to its blast
furnace (unless otherwise sold to an unconsolidated affiliate of our at prices in excess of carrying costs pursuant to an open
purchase agreement between our US subsidiary and this affiliate) at December 31, 2012.</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; background-color: white">We continually evaluate our
idled assets for impairment and believe that with the expected continued recovery of the industries into which we supply and resulting
expected demand in those markets, that the blast furnace will be restarted in the future. Accordingly, no impairment has been recorded
to date. We continue to incur costs to maintain the temporarily idled facility (such costs are charged to period expense) in anticipation
of bringing the facility back on line. Restarting the facility will require certain expenditures to restore the equipment to productive
status primarily inside the furnace area that utilizes refractory lining. A high number of our customers have preferences for steel
produced using the blast furnace due to better quality results from the constant temperature which produces even heat flow, and
we expect to restart the blast furnace once demand reaches a desired target level. Based on the above considerations and the fact
that our management clearly has not committed to a plan to abandon these assets, we believe the idled assets associated with our
blast furnace facility should be accounted for as assets in use.&rdquo;</P>

<P STYLE="font: 11pt Calibri, Helvetica, Sans-Serif; margin: 0 0 0 0.5in; text-align: justify; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Comparison of years ended
December 2011 and 2012, page 52 </U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">2.</TD><TD><I>Please revise future filings to provide a more robust discussion of your results of operations by segment. In addition,
please revise future filings to provide a more comprehensive discussion of changes in administrative expenses.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.3pt; background-color: transparent">In its
future filings, the Company will include a more robust discussion of operations by segment and a more comprehensive discussion
of the changes in administrative expenses.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Item 18. Financial Statements
</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Report of Independent Registered
Public Accounting Firm, page F-2 </U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">3.</TD><TD><I>Based on the provisions of SAS No. 1, section 543.09, it appears to us that your primary auditor was also required to refer
to the audit report of the other auditor in the last sentence of the second paragraph of their report. Please advise or revise.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.3pt; background-color: transparent">The Company
discussed the provisions of SAS No. 1, section 543.09 with its auditors who agreed that reference should have been made to the
audit report of the other auditor in the last sentence of the second paragraph of their report. The Company will make this correction
in future filings.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; background-color: transparent"><U>5. Basis for the preparation
and presentation of the financial statements, page F-12</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; background-color: transparent"><U>Summary of significant
accounting policies, page F-13 </U></P>


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<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in; padding-top: 6pt">4.</TD><TD STYLE="padding-top: 6pt"><I>We note your disclosures on page 22 that indicate you have entered into a factoring arrangement. Please tell us, and revise
future filings to clarify, your accounting policy for this arrangement and provide any other disclosures required by IFRS 7.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 35.4pt; background-color: white">In response to the
Staff&rsquo;s comment, in November 2011 the Company entered into an agreement with an unrelated third-party (&ldquo;purchaser&rdquo;)
for the factoring of specific accounts receivable in order to reduce the amount of working capital required to fund such receivables.
The agreement had an initial term of one year and is automatically extended for additional periods of one year each unless either
party provides written notice of cancellation. No notice was provided in 2012. The advanced proceeds from the factoring of accounts
receivable under this agreement is accounted for as a sale and accordingly is accounted for as an off-balance sheet arrangement.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 35.4pt; background-color: white">On the sale date,
the purchaser advanced funds equivalent to 80% of the value of receivables. The maximum amount of outstanding advances related
to the assigned receivables is $30 million. Proceeds on the transfer reflect the face value of the account less a discount. The
remaining amount between the receivable balance and the advance is held in reserve by the purchaser. Payment of the funds held
in reserve less a discount fee are made by the purchaser within four days of receipt of payment on collection of funds related
to each assigned receivable. The discount fee, which generally ranges from 1% if paid within 30 days (of the advance date) to 3.75%
if paid within 90 days, is recorded as a charge to interest expense in the Company&rsquo;s consolidated statements of comprehensive
income (loss).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 35.4pt; background-color: white">The purchaser has
no recourse against the Company if payments are not received due to insolvency of an account debtor within 120 days of the invoice
date. However, while the facility calls for the sale, assignment, transfer and conveyance of all rights, title and interests in
the selected accounts receivable, the purchaser may put and charge-back any receivable not paid to the purchaser within 90 days
of purchase for any reason besides insolvency of the account debtor. As collateral for the repayment of advances for receivables
factored, the purchaser has a priority security interest in all accounts receivable of the Company.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 35.4pt; background-color: white">The Company factored
a face amount of $31.2 million and $11.0 million of accounts receivable to the purchaser during the years ended December 31, 2012
and 2011, respectively. Discount fees incurred pursuant to this agreement were approximately $0.5 million and $0.2 million for
the years ended December 31, 2012 and 2011, respectively. These discount fees are included within interest expense in the Company&rsquo;s
consolidated statements of comprehensive income (loss). There was $2.6 million and $0.9 million of accounts receivable factored
which had not been collected by the purchaser at December 31, 2012 and 2011, respectively. The 2012 amount is subject to possible
charge-back to the Company. The Company evaluates the collectability of these factored accounts receivable in connection with the
evaluation of its total portfolio of its accounts receivable to determine the adequacy of the allowance for bad debts.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; background-color: white">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-indent: 35.4pt; background-color: white">The accounting policy
for this factoring arrangement, as described above, will be clarified and included in future filings and provide any other disclosures
required under IFRS 7.</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; background-color: transparent"><U>16. Employee Benefits, page
F-33</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">5.</TD><TD><I>We note your disclosure that Republic participates in the Steelworkers Pension Trust and that you account for this as a
defined contribution plan. To the extent applicable, please explain to us why sufficient information is not available for you to
account for this plan as a defined benefit plan. Also, please revise future filings to provide all the disclosures required by
paragraph 148(c) and (d) of IAS 19.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: justify; text-indent: 35.3pt; background-color: white">The
Company believes that sufficient information is not available for it to account for the plan as a defined benefit plan as required
by the IAS 19 paragraph 139 in order to qualify as a defined benefit plan. These requirements are:</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">1)</FONT></TD><TD><FONT STYLE="font-size: 12pt">Information about characteristics of the defined benefit plans including:</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">a)</FONT></TD><TD><FONT STYLE="font-size: 12pt">Nature of the benefits provided by the plan, for instance, final salary or plans based on contributions
with guarantee.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">b)</FONT></TD><TD><FONT STYLE="font-size: 12pt">A description of the regulatory frame in which the plan operates, for instance, the level of
minimal financial requirements.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">c)</FONT></TD><TD><FONT STYLE="font-size: 12pt">A description of any other responsibilities of the company for the plan government, for instance,
responsibilities of the trust or members of the plan board.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">2)</FONT></TD><TD><FONT STYLE="font-size: 12pt">A description of the risks exposing plan to the company, based on unusual risks, specific of
the company and plan and any other significant risk concentration.</FONT></TD></TR></TABLE>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-size: 12pt">3)</FONT></TD><TD><FONT STYLE="font-size: 12pt">A description of the modifications, reductions and settlements of the plan.</FONT></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; background-color: transparent">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 35.4pt; background-color: white">The
Company agrees to include in its future filings detailed information about whether the plan in question qualifies as a defined
benefit plan. In addition, the Company will include in its future filings all information required on the IAS 19 paragraph 148(
c) and (d).</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; background-color: transparent"><U>18. Stockholders&rsquo; Equity,
page F-38</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">6.</TD><TD><I>Please revise future filings to include all the information required by paragraph 79(a) of IAS 1. Also, please tell us,
and clarify in future filings, why the amount of capital disclosed in note 18(a) is not equal to the amounts in your consolidated
statements of financial position and consolidated statements of changes in stockholders&rsquo; equity.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.3pt; background-color: transparent">Regarding
the stockholders equity, the Company will include in its future filings all the information required by paragraph 79(a) of IAS1.
The Company&rsquo;s common stock as of December 31, 2012 and 2011; and as of January 1, 2011 consist of a nominal capital stock
of $2,420,230 Mexican pesos and a restatement of capital stock of $412,038 Mexican pesos for a total of capital stock of $2,832,268
Mexican pesos. In its future filings the Company will include the restatement of capital stock in note 18(a) to make it agree with
the amount in the Company&rsquo;s consolidated statements of changes in stockholders equity and its consolidated statements of
financial position.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; background-color: transparent"><U>25. Segment Information,
page F-43</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">7.</TD><TD><I>It is not clear to us why your disclosures related to information about products and information about geographic areas
are labeled &ldquo;unaudited.&rdquo; Please advise or revise.</I></TD></TR></TABLE>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 12pt; text-indent: 35.3pt; background-color: Transparent">Regarding
the &ldquo;unaudited&rdquo; label on the disclosures related to the segment information about products and information by geographic
areas, the Company recognizes that it was inadvertently included and will be corrected in future filings.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; background-color: transparent"><U>26. Contingencies, page F-45</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 12pt 0; background-color: transparent"><U>Department of Toxic Substances
Control, page F-45</U></P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">8.</TD><TD><I>Your disclosure states &ldquo;On October 19, 2010 the technical division of the DTSC recommended to the enforcement division
of DTSC that it impose significant penalties...&rdquo; Please tell us, and revise future filings to quantify, the penalties they
recommended and whether you have recorded a provision for these penalties.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.3pt; background-color: transparent">Regarding
the DTSC significant penalties, the Company responded to DTSC on November 15, 2010 with a letter disputing those violations and
even though the representative of DTSC expressed verbally that DTSC found those responses to be &lsquo;satisfactory&rsquo;, the
Company never received a written response stating that the DTSC will not pursue further action. The Company has not recorded a
provision for possible penalties, because according to its legal counsel, it is impossible to determine the extent of any fines
at this time.</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 12pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 12pt; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">9.</TD><TD><I>We note your disclosure that estimates you prepared related to potential remediation measures range from USD$ .8 million
to USD$ 1.7 million and that you have recorded a provision of USD$ .4 million. Please tell us, and clarify in future filings, why
your provision is less than the low end of your range.</I></TD></TR></TABLE>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.3pt; background-color: transparent">The Company
recognizes that the stated provision of US$0.4 million for potential remediation was inaccurate, as it has a provision of US$0.816
million and will correct this data in its future filings.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 35.4pt; background-color: transparent">_________________________</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 9pt; background-color: Transparent; text-indent: 0.5in">Please call
me (212-455-7433) with any questions you may have regarding the above responses.</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 3in; background-color: transparent">Very truly yours,</P>

<P STYLE="font: 11.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 3in; background-color: transparent">&nbsp;</P>

<P STYLE="font: 11.5pt Arial, Helvetica, Sans-Serif; margin: 0 0 0 3in; background-color: transparent">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 0 3in; background-color: transparent"><U>/s/ David L. Williams</U></P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 6pt 3in; background-color: transparent">David L. Williams</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0; background-color: transparent"><FONT STYLE="font-size: 11.5pt">cc:&#9;</FONT><FONT STYLE="font-size: 12pt; color: black">Mario
Moreno Cortez</FONT></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">&nbsp;</P>


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<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 10pt; background-color: transparent"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent; text-indent: 0.5in"><B>##soft-page##
Grupo Simec S.A.B. de C.V.</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Calzada L&aacute;zaro
C&aacute;rdenas 601</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Colonia La
Nogalera, Guadalajara,</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>Jalisco, M&eacute;xico
44440</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent"><B>&nbsp;</B></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: center; background-color: transparent">&nbsp;</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Mr. John Cash</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Branch Chief</P>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0; background-color: transparent">Securities and Exchange Commission<BR>
Division of Corporation Finance<BR>
100 F Street, NE<BR>
Washington, DC 20549</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.5in; text-indent: -0.5in; background-color: transparent">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 11.5pt Times New Roman, Times, Serif; margin-top: 0; margin-bottom: 0; background-color: transparent"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.5in">Re:</TD><TD>Grupo Simec S.A.B. de C.V., Form 20-F for year ended December 31, 2012</TD></TR></TABLE>

<P STYLE="font: 11.5pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-indent: 0.5in; background-color: transparent"><U>Filed
May 15, 2013, File No. 1-11176&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 10pt; background-color: transparent">Ladies and Gentlemen:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; background-color: transparent; text-indent: 0.5in">In
response to the Commission&rsquo;s staff&rsquo;s comment letter dated August 19, 2013 (the &ldquo;<U>comment letter</U>&rdquo;)
relating to the above-referenced annual report (the &ldquo;<U>Annual Report</U>&rdquo;) of Grupo Simec S.A.B. de C.V. (the &ldquo;<U>Company</U>&rdquo;),
originally submitted on May 15, 2013 pursuant to the Securities Act of 1933, as amended, the Company confirms its acknowledgment,
in connection with its responses to the comment letter that:</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in; background-color: transparent">1.&#9;the
Company is responsible for the adequacy and accuracy of the disclosure in the filings;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in; background-color: transparent">2.
&#9;Staff comments or changes to disclosure in response to Staff comments do not foreclose the Securities and Exchange Commission
from taking any action with respect to the filings; and</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt; text-align: left; text-indent: 0.5in; background-color: transparent">3.
&#9;the Company may not assert Staff comments as a defense in any proceeding initiated by the Securities and Exchange Commission
or any person under the federal securities laws of the United States.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 265.5pt; background-color: transparent">Very truly yours,</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 12pt 265.5pt; background-color: transparent">GRUPO SIMEC S.A.B.
de C.V.</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 4in; background-color: transparent">&nbsp;</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 265.5pt; background-color: transparent">By:
<U>/s/ Mario Moreno Cortez</U></P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 283.5pt; background-color: transparent">Name: Mario Moreno Cortez<BR>
Title: Chief Financial Officer</P>

<P STYLE="font: 12pt Times New Roman, Times, Serif; margin: 6pt 0 10pt; text-align: justify; background-color: transparent">&nbsp;</P>

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