Ternium, ArcelorMittal keep up with investments plans in Mexico despite threat of tariffs
Ternium and ArcelorMittal, two of the main steel producers in Mexico, announced that they do not plan to stop the multimillion-dollar investment plans that they carry out in the country despite threats from the U.S. government to impose tariffs on steel and aluminum imports.
ArcelorMittal, the world’s largest steelmaker, has not changed its plan to invest US$ 1 billion in a new production line in Mexico, a spokesman said on Friday to Reuters.
ArcelorMittal’s spokesman in Mexico said to the Canadian news outlet that 80% of the steel the company produced in the country was destined for the local market, with the remaining 20 percent exported to the United States, Canada and other markets.
“In this context, we will keep working in the same way,” said Ricardo Bussey, the corporate affairs director for ArcelorMittal Mexico, adding that the investment would take place over three years.
The investment covers construction of a new hot strip mill, which upon completion in about three years will allow annual production of 2.5 million tons of flat rolled steel, the company said in September.
Meanwhile, Cesar Jimenez, CEO of Ternium Mexico, said that the company trusts on the negotiating skills of the Mexican authorities, so they will continue with their investment programs in the country, which for the next three and a half years will total US$ 1.42 billion.
“We have great confidence in the capacity of the Mexican negotiating team, people with a lot of experience, who know very well what they want, and who will work to achieve the best agreement for Mexico,” he said during his participation in the Congress of the Steel Industry 2018, which is currently underway in the city of Monterrey, Nuevo Leon.
Regarding investments, he indicated that everything goes in time according to established schedules, “the one that is most advanced is our painting line that we will inaugurate in January next year and the galvanizing line that we are going to inaugurate in July”.
The buildings are being built and even the machinery is already in Monterrey ready for installation, together with the project of a hot mill.
The executive mentioned that currently Mexico imports around six million tons of steel, the vast majority of flat products, so “there is a very large market with which we are going to be able to be ahead with this investment”.
“Our mill will have the latest technology, we will be able to make any steel that is manufactured in the world, so what customers ask we will be able to give them,” he said.
– Seventh round of NAFTA talks concludes three chapters, leaves six more near completion
– Mexican steel production up 6.2% in 2017
– Steel Technologies adds new production line in Pesqueria, Nuevo Leon