ArcelorMittal to Increase Steel Production by 30 Percent
Home > Infrastructure > Article

ArcelorMittal to Increase Steel Production by 30 Percent

Photo by:   Yasin Hm
Share it!
Fernando Mares By Fernando Mares | Journalist & Industry Analyst - Mon, 12/12/2022 - 17:32

The Luxembourg-based steel producer ArcelorMittal said it would increase its steel production by 33 percent in the medium term. The goal is to reach a production of 5.3 million tons of steel, said company representatives.

During the Asia-Pacific Corridor event organized by ArcelorMittal and the government of Michoacan, Victor Cairo, CEO and Vice President, ArcelorMittal, said that the company is already producing 4 million tons of steel products like rods, wire, rolled and laminated steel, among other products. Nevertheless, the company aims to reach the 5.3 million ton production milestone in the medium term.

Cairo said that ArcelorMittal is the largest steel producer in Mexico using Mexican raw materials, as well as CFE’s largest energy consumer, which ensures the company’s supply chain adds value to many other companies. “We are incredibly happy to keep growing, to invest here. We are also happy to be backed by Alfredo Ramírez’s government since we reached 400 consecutive days without a blockade,” he added. 

According to Cairo, the company has actively invested in the Lazaro Cardenas municipality. In February 2022, the company invested over US$1 billion to acquire a steel rolling mill, which to date has already produced 900,000t of rolled steel. Cairo explained that the mill allows the company to produce 200,000t/m, which means it can produce over 2.4Mt/y 

Cairo explained that to make the 5.3 million ton milestone possible, the company must strengthen its logistics. This means it must avoid blockades and improve the Lazaro Cardenas port, which would entail further investment in the area to exploit the port’s potential. “This month, we moved 85,000t in trucks and I have been informed that we saturated the highways in Lazaro Cardenas. We are sending over 2.6 million tons between highways and railroad and if Kansas City Southern supports us, we can increase the volume,” Cairo added.

ArcelorMittal said that Michoacan can offer logistic solutions once investment in improving connectivity materialize since the state is close to the US West Coast. Therefore, Ramírez said that Lazaro Cardenas offers great opportunities to companies owing to its geographical position and logistic advantages. On Nov. 28, 2022, MBN reported Ramirez´s desire to transform Michoacan into a logistic hub, as he said that the state has at least three facilities that could boost the state capabilities: the Lazaro Cardenas port, the Bajio Uno industrial park and the Querendaro land reserve.  
 

Photo by:   Yasin Hm

You May Like

Most popular

Newsletter