Sheinbaum Administration Aims to Address AHMSA Crisis

Coahuila Governor Manolo Jiménez has announced that he is engaging with the incoming federal government to find potential solutions for the crisis at Altos Hornos de México (AHMSA). Jiménez stressed that the main focus is to protect the workers' economic well-being and secure their jobs.

Jiménez disclosed that Lázaro Cárdenas, Head of the Cabinet Office for president-elect Claudia Sheinbaum, has requested a comprehensive project proposal outlining potential solutions. "We are preparing a collaborative proposal. We agree on the root cause of the problem, which was the well-known confrontation impacting all the workers. Reviving the company requires close alignment among all parties."

What Happened to AHMSA?

On Nov. 30, 2023, AHMSA ceased steel production and has been unable to resume operations. AHMSA owes more than US$650 million, including contributions to IMSS, INFONAVIT, and FONACOT, payments to CFE and PEMEX for supplies and services, debts to suppliers and service providers, outstanding wages for its workers, and dues to the National Democratic Union of Mining, Metallurgical, Iron, Steel, and Related Workers (SNDTM), as reported by MBN.

Last month, AHMSA officially entered the bankruptcy phase after failing to secure an agreement with its creditors. Despite this significant challenge, the company is actively exploring new opportunities to revive the steelmaker, engaging in discussions with seven potential investors.

Experts observe that the Mexican industry still grapples with the aftermath of losing AHMSA's 4Mt steel production capacity. "It is a significant impact for the country that a plant with the capacity to produce nearly 4Mt of steel has stopped. Although we have maintained production levels, we have indeed experienced a significant decline that will take us several years to recover," Salvador Quesada, Director General, National Chamber of the Iron and Steel Industry (CANACERO), told el Financiero.