As the Mexican steel industry struggles with the massive imports of steel that have flooded the country in the past few months, local producers are looking at alternative ways to cut costs.
Altos Hornos de Mexico (AHMSA), the nation’s largest integrated steel mill, has advanced in two projects that aim to cut costs and help the company to meet its energy needs.
According to a media report on Thursday, the company’s oxygen plant No. 7, which is located at AHMSA’s No. 2 steel mill, is 80 percent complete. The plant will provide the industrial gases AHMSA needs for its steel processes.
With a 19,100 cubic meters/hour capacity (M3/h) to generate oxygen and an additional 6,400 M3/h capacity to generate nitrogen, the plant will commence operations in the beginning of 2016. The oxygen plant, also known as the plant No. 7, will be added to other plants of industrial gases located within AHMSA’s steel mills. The plants No. 5 and No. 6, along with the plant No. 7, are owned by Air Liquide Mexico, which provides AHMSA’s the industrial gases it needs.
As the completion of the oxygen plant No. 7 advances, AHMSA also looks at other energy plants.
On Thursday Caterpillar announced a project enabling AHMSA to “better control operating costs by producing 160 MW of power from four separate natural gas power plants in Monclova, Coahuila.”
AHMSA produces about 3.5 million mt of liquid steel per year, and consumes more than 400 MW of power between its two steel mills.
“To offset costs and enhance operational excellence, Caterpillar Energy Solutions is collaborating with local Caterpillar dealer, MADISA, to deliver … natural gas generator set,” the company said.
“We face many challenges in the steelmaking industry, and one of the greatest is energy consumption and its cost,” said Emigdio Valades, power plant area superintendent at AHMSA.
“With the power derived from these units, we are producing energy that is 55 percent cheaper than the power supplied by the Federal Commission.”
Madisa provided the transformers, control system, air compressors, fans and cabling needed for the operation. It also supplied plant commissioning and ongoing maintenance to ensure AHMSA’s operational success.