ArcelorMittal Plans US$600 Million Investment in Mexico
08/05/2008 - ArcelorMittal announces plans to construct a new steel mill in Mexico to produce rebar, merchant bar quality and special bar quality products for the local construction and automotive sectors.
ArcelorMittal announced plans to construct a new steel mill in Mexico for the production of carbon steel and bars including rebar, merchant bar quality and special bar quality products. The facility’s products would principally serve the construction and automotive sectors.
The facility will comprise electric steelmaking equipment capable of producing one million tonnes of billets per year and a new bar rolling mill with a capacity of 500,000 tonnes. This additional production will be directed to the domestic market, mainly to produce high added value steel products but also to support the Government of Mexico’s National Infrastructure Plan and Housing Program.
"We are delighted to be making this investment which underlines our commitment to the Mexican steel industry,” said Gonzalo Urquijo, Member of ArcelorMittal's Group Management Board with responsibility for Long Products. “Our plan calls for an investment of $US 600 million.”
The new facility will incorporate state-of-the-art technology and processing equipment to ensure it is both energy-efficient and environmentally responsible. It will also benefit from best practices that have been developed across the group’s operations. The location for the new facility, however, has not yet been determined.
“We are presently evaluating potential sites for the mill in Mexico,” added Urquijo. “The decision concerning the final location will be based upon a number of factors including logistics, supply chain and the availability of sufficient resources to run and operate the plant efficiently and responsibly.”
Commencement of construction will be subject to the receipt of appropriate regulatory approvals by the relevant local authorities.
ArcelorMittal is the world's leading steel company, with over 320,000 employees in more than 60 countries. The company leads a number of major global steel markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and outstanding distribution networks. With an industrial presence in over 20 countries spanning four continents, the company covers key steel markets, from emerging to mature.
Through its core values of sustainability, quality and leadership, ArcelorMittal commits to operating in a responsible way with respect to the health, safety and wellbeing of its employees, contractors and the communities in which it operates. It is also committed to the sustainable management of the environment and of finite resources. The company also takes a leading role in the industry's efforts to develop breakthrough steelmaking technologies and is actively researching and developing steel-based technologies and solutions that contribute to combating climate change.
In 2007, ArcelorMittal had revenues of USD 105.2 billion and crude steel production of 116 million tonnes, representing around 10% of world steel output.
