ArcelorMittal announces US$1.0 billion three-year investment programme in Mexico
September 28 2017 - 4:46PM
28 September 2017 - ArcelorMittal ('the
Company') today announces a major US$1 billion, three-year
investment programme at its Mexican operations, which is focussed
on building ArcelorMittal Mexico's downstream capabilities,
sustaining the competitiveness of its mining operations and
modernising its existing asset base. The programme is designed to
enable ArcelorMittal Mexico to meet the anticipated increased
demand requirements from domestic customers, realise in full
ArcelorMittal Mexico's productive capacity of 5.3 million tonnes
and significantly enhance the proportion of higher-value added
products in its product mix, in-line with the Company's Action 2020
strategic plan.
The main investment will be construction of a new hot strip
mill. Construction will take approximately three years and, upon
completion, will enable ArcelorMittal Mexico to produce c. 2.5
million tonnes of flat rolled steel. Coils from the new hot strip
mill will be supplied to domestic, non-auto, general industry
customers. Further investments will be made at Lázaro Cárdenas to
improve the quality and productivity of the asset base, with
additional investment in the group's Mexican mining operations.
Today's announcement follows confirmation that the Mexican
government has established five Special Economic Zones (SEZ) in
southern Mexico to attract infrastructure investment in areas of
undeveloped economic potential. Lázaro Cárdenas, home to
ArcelorMittal Mexico's primary steelmaking operations, was named a
SEZ.
Commenting, Lakshmi Mittal, Chairman and CEO, ArcelorMittal,
said:
"In order to make investment decisions of the scale we have
announced today we need both a favourable investment environment
and confidence in long-term domestic growth prospects. I therefore
warmly welcome the confirmation of the Special Economic Zones by
the Mexican government, which establishes a positive regulatory
investment framework aimed at facilitating economic and
infrastructure development in the south of the country. Our
investment programme is aligned with the Mexican government's
objectives, and will enable us to benefit from the anticipated
increased demand for higher-added value steel products from
domestic Mexican customers. It reinforces our long-standing
presence in Mexico, will support the creation of approximately 800
new jobs and play an important role in bolstering economic activity
in the region."
Victor Cairo, CEO, ArcelorMittal Mexico, added:
"Construction of the new hot strip mill, alongside the other
projects in our investment programme which are geared towards
enhancing the efficiency and quality of our operations, will enable
us to optimise our asset base and increase the proportion of
finished steel products for our domestic customers. The investments
will help us to meet the demand requirements for higher-added value
products we expect to see from domestic customers, which today are
heavily dependent on imports, while continuing to support
ArcelorMittal's NAFTA operations by providing high-quality
semi-finished steel slabs."
ArcelorMittal Mexico currently produces c. 4 million tonnes of
steel a year. Following completion of the investment programme,
production would be optimised to c. 5.3 million tonnes per year,
with the proportion of finished steel for the domestic Mexican
market significantly expanded. Flat rolled steel production would
total c. 2.5 million tonnes, long steel c. 1.8 million tonnes with
the remaining 1 million tonnes made up of semi-finished slabs.
EndsAbout ArcelorMittal
ArcelorMittal is the world's leading steel and mining company,
with a presence in 60 countries and an industrial footprint in 18
countries. Guided by a philosophy to produce safe, sustainable
steel, we are the leading supplier of quality steel in the major
global steel markets including automotive, construction, household
appliances and packaging, with world-class research and development
and outstanding distribution networks.
Through our core values of sustainability, quality and
leadership, we operate responsibly with respect to the health,
safety and wellbeing of our employees, contractors and the
communities in which we operate.
For us, steel is the fabric of life, as it is at the heart of
the modern world from railways to cars and washing machines. We are
actively researching and producing steel-based technologies and
solutions that make many of the products and components people use
in their everyday lives more energy efficient.
We are one of the world's five largest producers of iron ore and
metallurgical coal. With a geographically diversified portfolio of
iron ore and coal assets, we are strategically positioned to serve
our network of steel plants and the external global market. While
our steel operations are important customers, our supply to the
external market is increasing as we grow.
In 2016, ArcelorMittal had revenues of $56.8 billion and crude
steel production of 90.8 million tonnes, while own iron ore
production reached 55.2 million tonnes.
ArcelorMittal is listed on the stock exchanges of New York (MT),
Amsterdam (MT), Paris (MT), Luxembourg (MT) and on the Spanish
stock exchanges of Barcelona, Bilbao, Madrid and Valencia (MTS).
For more information about ArcelorMittal please visit:
http://corporate.arcelormittal.com/
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