Mexican integrated steelmaker Altos Hornos de Mexico will transfer equipment and assets from an US pellet plant it acquired in the state of Indiana. The deal, anticipated by SteelOrbis in October 2018, was only officially announced by AHMSA this week.
AHMSA said the assets of the former Reynolds pellet plant are in “excellent condition.” As such, the company will move the equipment from the US to Monclova, in the state of Coahuila, where its steelmaking complex is located.
AHMSA paid $15 million for the indebted company, which was owned by ERP Iron Ore. AHMSA said the “similarity” between the Reynolds pellet plant and AHMSA’s pelletizing unit means it would be “profitable” and “convenient” for the company to buy the US asset.
AHMSA will use the Reynolds pellet plant equipment at its pelletizing plant, located at its No. 2 steelworks in Monclova, Coahuila state.