Altos Hornos de Mexico (AHMSA) signed an agreement with UK-based Primetals Technologies to acquire US$ 444 million in equipment, the Mexican steelmaker announced in a press release.
According to AHMSA, the new equipment will meet the demands of the automotive industry as well from other segments.
AHMSA said the agreement includes the purchase of a new Continuous Casting machine of straight mold, which will replace its Continuous Casting No. 3.
The new product is expected to increase the specifications of the products AHMSA currently produces, at the same time increasing the equipment's capacity from 2 million to 2.5 million metric tons per year.
Additionally, AHMSA also agreed to replace its hot rolling mill for a new one, increasing its capacity from 2.8 to 3.5 million mt/year.
Other equipment purchased includes the installation of a third cold rolling mill, and a new tinplate generation unit with double reduction.
The new tinplate equipment will increase AHMSA's production to 450,000 mt/year from 150,000 mt/year, while the new cold rolling mill will increase the company's capacity from 800,000 mt/year to 2.3 million mt/year.