Despite the uncertainty surrounding the North American Free Trade Agreement, ArcelorMittal remains committed to investing US$1 billion in a new production line in Mexico, Reuters reported March 3, citing a company spokesperson.
The company revealed the three-year plan in September 2017, with expectation that the increased capacity will enable it to meet anticipated higher domestic demand.
The investment will see construction of a new hot strip mill, which will produce 2.5 million tonnes of flat rolled steel per annum.
About 80% of the steel produced in Mexico by the company is targeted for the local market, with the remaining 20% to be exported to the U.S., Canada and other global markets, said Ricardo Bussey, the corporate affairs director for ArcelorMittal Mexico.
The U.S. recently announced plans to impose a 25% tariff on steel and 10% tariff on aluminum imports.
The Luxembourg-based steel giant expects its production to reach 4.2 million tonnes this year, higher than the 3.8 million tonnes it produced in 2017.
Ternium also said in late 2017 that it planned to invest about US$1.19 billion in its steel facilities in Mexico and Colombia. However, the steelmaker told the news wire that it could not immediately comment on its future plans.
