ArcelorMittal to complete expansion of plant in Mexico in 2021
ArcelorMittal reported that it will complete the expansion and modernization of its steel plant in Lázaro Cárdenas, Michoacán (Mexico) in 2021.
The project includes an investment of $ 1 billion for a new rolling line, mining development and asset modernization, as part of a broader strategic investment plan, which will boost ArcelorMittal’s installed production capacity in Mexico to 5.3 million tons per year.
The net cash used by the company in investment activities during the first quarter of 2020 was $ 755 million. Capital expenditures of $ 850 million in that period compare to $ 947 million in the first quarter of 2019.
Number of facilities (BF and EAF)
ArecelorMittal has responded to the impact of COVID-19 with actions taken to reduce production and is adapting its capital spending plans to the operating environment.
Thus, the company has suspended all non-essential capital expenditures, while the Mexico factory project, certain agreed Italian projects and certain projects to reduce CO2 emissions continue.
ArcelorMittal in Mexico
On September 28, 2017, the company announced a major investment program in its Mexican operations, which focuses on developing subsequent capabilities in Mexico, maintaining the competitiveness of its mining operations, and modernizing its existing asset base.
The program is designed to enable the company to meet the requirements of higher anticipated demand from national customers, expand its total production capacity and significantly improve the proportion of higher value-added products in its product mix, in line with its Plan. of Action 2020.
The main investment will be the construction of a new hot strip mill. Once completed, the project will allow ArcelorMittal México to produce 2.5 million tons of flat rolled steel, 1.8 million tons of long steel and the rest consisting of semi-finished slabs.
The hot strip mill project started at the end of Q4 2017 and is expected to be completed in 2021.
