ArcelorMittal's plant in Lázaro Cárdenas. ArcelorMittal's plant in Lázaro Cárdenas.

Steelmakers announce big spending plans

Ternium, ArcelorMittal to invest US $2.1 billion over three years

Steelmakers Ternium and ArcelorMittal yesterday announced investments in Mexico that will total US $2.1 billion by 2020.

ADVERTISEMENT

Ternium plans to install a new state-of-the-art rolling mill at its industrial center in Pesquería, Nuevo León, allowing for an upgrade to Mexico’s steel production capacity and expansion of the company’s product range.

The new mill represents an investment of $1.1 billion and will have an annual capacity of 3.7 million tonnes. It is expected to be operational by the second half of 2020.

The new equipment will allow Ternium to produce technologically advanced products for the automotive and other industries in Mexico, said company CEO Daniel Novegil.

The $1-billion investment by ArcelorMittal will also be made over the next three years and is intended to meet domestic demand for steel products, which CEO Lakshmi Mittal said was growing rapidly.

He said work will begin immediately to modernize its facilities at the port of Lázaro Cárdenas in Michoacán, home to the firm’s primary steelmaking operations in Mexico.

Included will be a new hot strip mill which upon completion in three years will allow production of 2.5 million tonnes of flat rolled steel. The investment will also boost the company’s mining operations in Mexico.

ArcelorMittal currently produces about 4 million tonnes a year but the expansion will boost that to 5.3 million.

The company is the biggest private-sector employer in the Pacific coast port city. The upgrade will generate 3,800 new jobs, 800 direct and the remainder indirect, in Michoacán.

ArcelorMittal is the world’s largest steel company; Ternium is the largest in Latin America.

Source: Business Wire (en), Reuters (en), El Universal (sp)

Stories from our archives that you might enjoy

  • Capitalism is good.

    • Commander Barkfeather

      When controlled.

      • Lightly.

        • pres68y

          Yes, that’s what Rockefeller said when he owned the oil wells, railroads, and distribution to get it to market.

  • WestCoastHwy

    Capitalism? This is just another Cartel but highly sophisticated; with Chinese, Koreans, and Russians being on the other side. Mexico’s ore mines obviously are at the center of this issue which one of the Mexican Cartel was stealing and selling to the Chinese and flooding the Mexican Steel Market with under priced Chinese product. But I do need to say that India is kicking azz and taking names in the Globalization Game!

FreeCurrencyRates.com
ADVERTISEMENT