Oct. 11, 2017

ArcelorMittal Announces $1 Billion Investment in Mexican Operations

Luxembourg-based steelmaker ArcelorMittal will invest $1 billion over three years in its Mexican operations, which includes the construction of a new hot strip mill. The company says the investment will look to build ArcelorMittal Mexico’s downstream capabilities, modernize its existing asset base and keep its mining operations competitive.

“Our investment program is aligned with the Mexican government’s objectives, and will enable us to benefit from the anticipated increased demand for higher added-value steel products from domestic Mexican customers,” says Lakshmi Mittal, chairman and CEO of ArcelorMittal. “It reinforces our long-standing presence in Mexico, will support the creation of approximately 800 new jobs and play an important role in bolstering economic activity in the region.”

A new hot strip mill will be the main feature of the investment program, which will take approximately three years to construct. Upon completion, the mill will allow ArcelorMittal Mexico to produce 2.5 million tons of flat-rolled steel. Coils from the new hot strip mill will be supplied to domestic, non-auto, general industry customers.

“Construction of the new hot strip mill will enable us to optimize our asset base and increase the proportion of finished steel products for our domestic customers,” says Victor Cairo, CEO at ArcelorMittal Mexico. “The investments will help us to meet the demand requirements for higher-added value products we expect to see from domestic customers, which today are heavily dependent on imports, while continuing to support ArcelorMittal’s NAFTA operations by providing high-quality, semi-finished steel slabs.”

The company says it would make further investment at ArcelorMittal Mexico’s primary steelmaking operations in Lázaro Cárdenas to improve the quality and productivity of the asset base, with additional investment in the group’s Mexican mining operations.

Overall, the three-year, $1 billion investment program is expected to help ArcelorMittal Mexico meet the anticipated increased demand requirements from domestic customers, realize ArcelorMittal Mexico’s full productive capacity of 5.3 million tons and significantly enhance the proportion of higher value-added products in its product mix.

The announcement follows confirmation from the Mexican government that it has established five special economic zones in the southern part of the country to attract infrastructure investment in areas of undeveloped economic potential.


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Thursday, November 23, 2017