Mexican steelmaker Altos Hornos de México (AHMSA), confirmed an iron ore plant it bought for US$ 15 million from Minnesota-based group ERP Iron Ore LLC will be dismantled and transferred from Indiana to Monclova, Coahuila.
In a statement sent to the Mexican Stock Exchange (BMV), the company said the machinery and equipment of the Reynolds Pellet plant located in Reynolds, Indiana was acquired through an auction after ERP was declared bankrupt in July 2018.
“With an offer of US$ 15 million, accepted by the Court that resolved the bankruptcy (District of Minnesota United State Bankruptcy Court), AHMSA was awarded the unit in excellent condition – installed in 2014 – and will proceed to dismantle it to move the assets to Monclova,” says the document.
Given the similarity between the Reynolds plant and the AHMSA-owned pelletizing plant, the operation was highly profitable and convenient for the Mexican company and its subsidiary Minera del Norte, an iron producer, given that for a low-cost equipment was purchased with very little use and new parts that will facilitate your production increase plan.
In addition to the financial aspect, there’s also time-savings benefits, given that immediately counting with the equipment accelerates the operations necessary to reach the projected capacity, since the acquisition of this type of units in the market implies accepting long terms of delivery.
“AHMSA will take charge of dismantling the equipment, which will be gradually shipped to Monclova to be incorporated into the Pelletizing Plant located in the Siderúrgica 2 complex and its spare parts park,” the company concluded.