Steel Mills
AHMSA Could Restart Next Week: Report
May 8, 2023
When gas is restored to Altos Hornos de México’s (AHMSA’s) plants, operations could restart at the Mexican steelmaker as early as next week, and within six weeks steel production could be at a good level, according to comments by AHMSA’s CEO in a Mexican media report.
However, although Daniel Chapman, founder and CEO of investment fund Argentem Creek Partners, was recently appointed as the new director of AHMSA’s board, no date has been set for the first $50 million of a total of $250 million in payments, according to an article in Mexico’s Periódico La Voz on May 5.
In comments to the publication, Luis Zamudio Miechielsen, AHMSA’s CEO, said it is unknown when the money will arrive. He noted this is creating problems, and AHMSA is selling scrap metal and coal to get by, but he believes that gas could be supplied to the plants within the next few days.
Michelsen pointed out that the first thing AHMSA will do with the $50 million will be to pay workers’ salaries. Steel production at AHMSA has been stopped since December 2022.
A separate article from Periódico La Voz on May 9 said the $50-million payment could arrive either Tuesday or Wednesday.
A spokesman for AHMSA did not return SMU’s email request for comment.
By Ethan Bernard, ethan@steelmarketupdate.com
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