Mexico captured 2.1 billion dollars in Foreign Direct Investment (FDI) for the construction of two steel production plants that will begin operations in the second half of 2021 and the first half of 2022.
As part of these investments, Mexico received 975 million dollars in the first half of the current year in the manufacture of iron and steel products, a record for a similar period.
In the first case, ArcelorMittal will conclude at the end of 2021 a hot sheet steel production plant in Lázaro Cárdenas, Michoacán, with a production capacity of 2.5 million tons per year.
In the other, during 2020, Ternium’s capital investments in the steel segment in Mexico amounted to 361.7 million dollars and were mainly related to its project to build a new hot rolling mill at its Pesquería unit in Nuevo León. The new line will have an annual production capacity of 4.4 million tons with a total investment of approximately one billion dollars.
In this regard, the federal government reported that two investments in the steel industry for more than 2,100 million dollars are being carried out in Mexico for new hot sheet steel manufacturing plants, and that this will meet the requirements of consumers of steel, among which the automotive industry stands out, which It must comply with a stricter 70% rule of origin to enjoy zero tariff within the Mexico-United States-Canada Treaty (T-MEC).
To weigh the amount of new investments: Mexico captured 9,952 million dollars in FDI from 1993 to the first half of 2021 in the manufacture of iron and steel products, according to data from the Ministry of the Economy.
On September 28, 2017, ArcelorMittal announced a major $ 1 billion investment program in its Mexican operations, which focuses on developing ArcelorMittal Mexico’s downstream capabilities, maintaining the competitiveness of its mining operations, and modernizing its existing asset base. .
The program is designed to allow ArcelorMittal México to meet the capacity to meet increased demand from domestic customers, reach a production capacity of 5.3 million tons and significantly improve the proportion of higher value-added products in its 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 remainder 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 started at the end of the fourth quarter of 2017 and is expected to be completed by the end of the current year.
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