Mexican steelmaker Grupo Deacero will invest $1 billion over the next three years as it aims to expand its steel production by 1.2 million tons per year, according to a local media report.
Deacero said earlier this month in a Spanish article in Reforma that it would build a new steel mill in Ramos Arizpe, a city in Mexico’s Coahuila state. The company also said it would acquire machinery and equipment to strengthen operations at its current plants in Saltillo, in Coahuila state, and in its Celaya Industrial Complex, in Guanajuato.
Raúl Gutiérrez Muguerza, president of the Monterrey, Mexico-based longs producer told Reforma the project would take three years to complete. He noted that the new steel mill would be “be “one of the most modern plants in the world.”
A company spokesman confirmed to SMU that it would be an electric-arc furnace mill but provided no further detail by time of publication.
“The purpose is to promote regional development and increase the production capacity of the business units with investments destined for the national market,” Muguerza said in the article.
He said the company hopes to generate close to a thousand direct and five thousand indirect jobs with the investment.
“This decision promotes the growth of business partners and clients, while seeking to address part of the new demand from foreign companies in Mexico derived from nearshoring,” Muguerza said.
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