Two U.S. steel companies recently announced they were expanding in Mexico through acquisitions and facilities upgrades. The investments come despite recent drops in Mexican steel production related to the coronavirus.
Wisconsin-based Maysteel Industries is expanding sheet metal fabrication operations in Monterrey. The company’s new 200,000-square-foot campus in Monterrey will feature a streamlined layout designed around optimizing material flow.
Indiana-based Steel Dynamics Inc. announced on Monday it is acquiring Zimmer, a Monterrey-based recycling business. The acquisition will support Steel Dynamics’ new flat roll steel mill being developed in Sinton, Texas.
“We look forward to welcoming Zimmer to the Steel Dynamics family to further solidify our Southwest U.S. and Mexico growth strategy,” Mark D. Millett, president and CEO of Steel Dynamics, said in a release on Feb. 26. “Combined with our existing metals recycling presence in Mexico, the addition of Zimmer provides an expanded commercial presence in the region and strengthens our raw material supply strategy, allowing for cost-effective ferrous scrap procurement for our new Texas flat roll steel mill.”
Maysteel’s and Steel Dynamics’ recent transactions were bright spots for the steel industry in Mexico, which experienced a 15.9% decline in production during January.
Steel production for the month was 1.37 million tons, compared to 1.63 million tons during the same period in 2019, according to a recent report from the World Steel Association.
Part of the lower steel output in Mexico was due to slower production, as well as logistics bottlenecks in China related to the coronavirus, said Alma Iglesias Márquez, sales director for steel manufacturer Grupo Simec.
Guadalajara-based Grupo Simec manufactures steel for the automotive, construction and mining industries. Other large steel companies in Mexico include DeAcero, Tubacero, Altos Hornos de México, ArcelorMittal México and Ternium México.
Source: World Steel Association
more recommended stories
Vila and Fonatur Director reaffirm their commitment to continue promoting projects
Vila Dosal and the federal official.
Mexican Navy will take control of the security at Mérida Airport
The Mexican Navy (SEMAR) will be.
Yucatan Restaurant Sector severely affected by the unstoppable price increase
The restaurants are resisting this increase.
Expansion of the Electric Network in Chelem, Yucatan
Progreso City Council, will expand the.
Dead baby found inside a prison in Puebla would have been used as a “mule”
The little body of the infant.
Mexican actor Roberto Palazuelos announces he will run for governor of Quintana Roo as the Movimiento Ciudadano candidate
Roberto Palazulelos is a Televisa’s Telenovelas.
LP Gas company worker dies from accidental electrocution in Downtown Mérida
After receiving the electric shock, the.
National Guard detains passenger at the Mérida airport carrying half a million pesos in cash
Agents of the National Guard questioned.
U.S. is concerned about AMLO’s Energy Reform.
AMLO’s reform could hinder joint clean.
U.S. Energy Secretary Jennifer Granholm expressed her concern about Mexico’s policies
U.S. airs concerns over Mexico energy.