ArcelorMittal will invest US $ 200 million in Mexico in 2021

ArcelorMittal reported that it will invest 200 million dollars in Mexico during 2021 to complete a new hot rolling plant at its steel complex in Lázaro Cárdenas, Michoacán.

The company‘s capital expenditures were $ 2.4 billion in 2020 and $ 3.6 billion in 2019.

Over the past year, ArcelorMittal responded to the impact of Covid-19 with actions taken to reduce production and adapt its costs to the operating environment.

Thus, the company suspended all non-essential capital expenditures.

But Mexico’s hot rolling project, agreed Italian projects and certain projects to reduce CO2 emissions continued.

By 2021, ArcelorMittal expects to fund these capital expenditures primarily through internal sources.

Expansion in Mexico

On September 28, 2017, ArcelorMittal announced a major investment program of $ 1 billion in its Mexican operations.

The plan focuses on developing ArcelorMittal México’s downstream capabilities, maintaining the competitiveness of its mining operations and modernizing its existing asset base.

In addition, the program is designed to allow ArcelorMittal México to meet the anticipated increase in demand requirements from domestic customers, fully realize ArcelorMittal México’s production capacity of 5.3 million tons, and significantly improve the proportion of products from greater added value in your product mix.

The main investment will be the construction of a new hot strip mill.

Upon completion, the project will allow ArcelorMittal México to produce approximately 2.5 million tons of flat rolled steel, 1.8 million tons of long steel, and the remaining volume would be made up of semi-finished slabs.

The coils of the new hot strip mill will be supplied to domestic, non-automotive, general industry customers.

The hot strip mill project began at the end of the fourth quarter of 2017 and is expected to be completed by the end of 2021, with capital expenditures of approximately $ 200 million in 2021.

ArcelorMittal Mexico

The company produces both flat and long steel products.

Produces higher quality slabs for use in specialized steel applications in the automotive, pipe fabrication, shipbuilding and appliance industries.

It is also one of the largest rebar and wire rod production facilities in Mexico and primarily uses the integrated route for steelmaking.

The facility is located in Lázaro Cárdenas in the state of Michoacán on the Pacific coast and is highly accessible by sea, rail and other means. It also operates a rebar mill in Celaya with billets from the Lázaro Cárdenas plant.