ArcelorMittal plans to invest $1 billion in Mexico

2017-09-29

Sep. 29, 2017 - ArcelorMittal, the world's largest steelmaker, plans to put $1 billion in Mexico over the coming three years.

During the first half of 2017, AreclorMittal produced nearly $12 billion of steel in North America while shipping about $11 billion from the three-country region linked by the 23-year-old North American Free Trade Agreement, which is currently being renegotiated.

"I am delighted to announce a $1 billion investment in Mexico over the next three years so we can meet Mexican demand for steel products, which is growing rapidly," the company's chairman and chief executive, Lakshmi Mittal, said at an event in southern Chiapas state attended by President Enrique Pena Nieto.

The event launched the government's new special economic zones in southern Mexico, the country's poorest region, in a bid to attract infrastructure investment.

The investment covers construction of a new hot strip mill, which upon completion in about three years will allow production of 2.5 million tonnes of flat rolled steel.

The spending will also boost ArcelorMittal's Mexican mining operations and will "support ArcelorMittal's NAFTA operations by providing high-quality semi-finished steel slabs," the company said.

ArcelorMittal operates six facilities at three ports in Mexico, producing about 4 million tonnes per year, but the investment will improve the annual production by about a third to reach 5.3 million tonnes.