ArcelorMittal invests US$15 million in its new plant
ESCOBEDO, NL – ArcelorMittal México will invest US$15 million for its plant in Escobedo, Nuevo Leon. This plant produces pipes for the automotive industry, according to Jaime Luján Valladolid, director of Industry and Flat Steel Sales.
“The investment will be used for the installation of a fifth pipe mill at the plant and production will be dedicated to serving Tier 1 and Tier 2 suppliers, which in turn supply companies such as Volkswagen, General Motors and Ford for vehicles such as the Suburban, Tahoe and Fusion,” said Luján Valladolid.
Luján Valladolid pointed out that the relocation of production chains in the region, known as “nearshoring”, has allowed the arrival of new companies and more investments in the country and has benefited ArcelorMittal at a global level.
He explained that they seek to have experts in the energy sector, in tanks, white goods, heavy industry with the support of their sales force and together with them to develop a strategy on how to attack these niches, seeking a greater market share that today is served by imports and that they want to address in order to stop importing and consume what ArcelorMittal manufactures.
Compared to similar green field projects in Brazil or Poland, ArcelorMittal Mexico has performed better in terms of development and start-up curve.