Nuevo Leon-based Deacero mulls plant closure in Missouri due to tariffs

17 June, 2018

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Nuevo Leon-based Deacero, a company dedicated to the manufacture of steel products, is considering the closure of a plant in Missouri, which employs 600 workers, due to the imposition of a 25% tariff on imports of Mexican steel.

Raul Gutierrez Muguerza, CEO of Deacero, told El Economista that the tax puts the industrial nails plant at risk because costs are immediately raised and there is no way to absorb the impact.

The official recently held a meeting with the governor of Missouri, Mike Parson, in search of a scheme to support the factory that operates under the Magnum Fasteners brand, because without this production, the U.S. market would have to import the finished product, since this facility, Gutierrez said, is the only one of its kind in the U.S.

He also asked the governor to approach the White House to talk about the effects that tariffs cause.

In 2012, Deacero acquired the Mid Continent Nail plant in 2012, which currently has the capacity to produce 100,000 tons of steel nails for the construction industry. Since it was acquired, the plant has increased its output capacity by 40% and added 100 workers to its original staff.

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