ArcelorMittal, the second largest steelmaker in the world, announced that its unit in Mexico reported an accident on Sunday morning in one of its four EAFs at its plant in the western Mexican state of Michoacán, which will temporarily affect the level of production.
“As we continue to assess the damage incurred, we acknowledge the potential impact on the steel supply to our customers due to the anticipated reduced production capacity in the second quarter. Mitigation strategies are being implemented to minimize supply disruption due to the temporary loss of one quarter of the EAF production capacity,” ArcelorMittal México reported on Monday evening.
The fire started on Sunday morning due to a failure in an electrical power transformer of one of the four electric furnaces, causing a fire. The incident was controlled by ArcelorMittal personnel, firefighters from the seaport and firefighters from the city of Lázaro Cárdenas.
“We are dedicated to restoring normal operations as swiftly as possible,” the company said in a press release. It also said there were no serious injuries.
Company data, seen by SteelOrbis, shows that Mexico is the eighth largest revenue generator. In 2023 it contributed 4.8 percent of the $68.3 billion. Of the more than 24 countries where ArcelorMittal has operations, Mexico was the second country that gained revenue share, going from 3.6 percent in 2022 to 4.8 percent in 2023.
The United States was the country that gained the most participation, going from 11.1 percent in 2022 to 13.0 percent in 2023. Mexico is surpassed in income by Brazil (12.1 percent of the total), Germany (9.6 percent), France (6.8 percent percent), Poland (6.5 percent), Spain (5.8 percent) and Canada (5.1 percent)
Data from the World Steel Association places ArcelorMittal as the second largest steel company producing liquid steel in the world, only surpassed by the state-owned Chinese company Baowu Steel Group.
ArcelorMittal is one of the largest steel companies in Mexico. In 2023, it manufactured 3.8 million metric tons of rod, wire rod, wire, among others. It also produces slab, billet, bars and tubes. According to the Mexican government, through the Ministry of Economy, ArcelorMittal México has been producing rolled steel plates since 2022.