New Commission to Supervise AHMSA Bankruptcy Process

A special commission has been established to oversee the bankruptcy proceedings of Altos Hornos de México (AHMSA). MORENA Senator Luis Fernando Salazar emphasized that the commission’s main objectives are to protect the interests of steelworkers and to revitalize the region’s industrial capacity.

“The bankruptcy of Altos Hornos has had a significant economic impact on the central region, where the company accounts for 8% of the GDP. Families have been without income for over 80 weeks,” Salazar stated.

The commission will consist of 11 senators. Salazar will serve as chair, with MORENA Senator Cuauhtémoc Ochoa as secretary and PT Senator Geovanna Bañuelos serving as the second secretary. Other members include PRI Senator Miguel Riquelme, Movimiento Ciudadano Senator Luis Donaldo Colosio, and Morena Senators Alfonso Cepeda, Laura Castillo, Julieta Ramírez, and Lilia Valdez. Virgilio Mendoza from the Green Party is also part of the commission, with one final appointment pending from the PAN party.

“The commission will be installed next week, before the legislative session concludes. We will begin discussions with the Tax Prosecutor’s Office, the Ministry of Finance, the Ministry of the Interior, and the Ministry of Labor,” Salazar said.

What Happened to AHMSA?

In 2019, Alonso Ancira, the company’s president at the time, was arrested in Spain following an investigation into bribes to PEMEX officials to overcharge for a fertilizer plant sale in northern Mexico. Part of the illicit proceeds were transferred to Odebrecht accounts. Following Ancira's arrest, CFE canceled several contracts with AHMSA. The administration of President López Obrador later reached an agreement with Ancira to return US$200 million dollars: the estimated overcharge from the fertilizer plant sale to PEMEX.

On Nov. 30, 2023, AHMSA ceased steel production and has, since then, been unable to resume operations. Earlier in 2024, Grupo Acerero del Norte reached an agreement to sell a majority stake in AHMSA to a group of foreign investors for US$200 million. This transaction is part of a financial restructuring plan designed to address the company's bankruptcy and enable its recovery.