ArcelorMittal To Invest $1 Billion At Mexican Operations
Zacks Investment Research | Oct 03, 2017 09:40PM ET
ArcelorMittal (NYSE:MT) recently announced a three-year investment program of roughly $1 billion at its Mexican operations, which will be focused on constructing the company’s downstream capabilities, modernizing existing asset base and sustaining the competitiveness of its mining operations.
ArcelorMittal Mexico currently produces 4 million tons of steel per annum and this program will enable it to realize its full productive capacity of 5.3 million tons. It will also address the expected increase in demand from domestic customers and considerably improve the proportion of higher-value added products in product mix, in line with the company’s Action 2020 strategic plan.
The primary investment consists of building a new hot strip mill, which is likely to take three years to complete. This will allow ArcelorMittal Mexico to produce 2.5 million tons of flat rolled steel, which will be supplied to customers of domestic non-auto and general industry.
The company will also make additional investments at Lazaro Cardenas, primary steelmaking operations base of ArcelorMittal Mexico, to improve the productivity and quality of the asset base, with further investment in the group’s mining operations in Mexico.
According to the company, the latest investment program is geared toward improving the quality and efficiency of operations. It will enable the company to increase the proportion of finished steel products and optimize the asset base for domestic customers.
Shares of ArcelorMittal have moved up 14.6% in the last three months, outperforming the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.