Mexico will operate two new hot sheet steel manufacturing plants
Mexico will operate two new hot sheet steel manufacturing plants, the government of that country reported.
The Presidency of the Republic specified that with its strategy of relocation and expansion of productive capacities, it promoted two investments in the steel industry for more than 2,100 million dollars, for new hot sheet steel manufacturing plants, which will begin operations between the second 2021 semester and 2022 first semester.
Hot sheet steel
With this, the requirements of steel consumers will be met, among which the automotive industry stands out.
Mexico exported cars worth 40.495 million dollars in 2020, with a year-on-year fall of 20.4%, remaining the fourth largest exporter in the world.
In this regard, there are two relevant points in the country.
In the first place, in relation to the international commitments assumed with respect to the Paris Agreement, the government of Mexico published the preliminary bases of the Pilot Program of the Emissions Trading System.
The Pilot Program for the Emissions Trading System began on January 1, 2020 and will continue for three years. Regulates companies in the energy and industrial sectors, including, among others, electricity generation; production of cement, iron and steel; and refinement.
Regarding the second point, the United States announced on May 17, 2019 an agreement with Canada and Mexico to eliminate tariffs on steel and aluminum imports from Canada and Mexico that it had previously imposed on June 1, 2018 and to eliminate all retaliatory tariffs imposed on US products by Canada and Mexico.
The agreement provides for aggressive monitoring and a mechanism to prevent surges in steel and aluminum imports to the United States.
If there are surges in imports of specific steel and aluminum products, the United States can reimpose tariffs on those products.
Furthermore, any retaliation by Canada and Mexico would then be limited to steel and aluminum products.
