Deacero announced plans to build its fourth steel mill, with a capacity of 1.2 million metric tons (mt) in the northern city of Ramos Arizpe, Coahuila, located 45 miles west of its plants in Monterrey, Nuevo León.
The expansion project will be located in the same city where it already has a steel mill. The investment for this new unit was not detailed, however the steel company will invest $1.0 billion in the new steel plant and in the purchase of machinery and equipment for its steel plants in Celaya (Villagran, Guanajuato) and Saltillo, Coahuila.
The new plant "will be an intelligent, automated and sustainable plant to take care of the physical integrity and safety of employees and guarantee high standards of quality, service and productivity," said president of the Board of Directors of Grupo Deacero, Raúl Gutiérrez Muguerza, according to the newspaper El Norte.
The investment will be made over a period of three years. Information about when construction will begin and when production is planned to begin was not disclosed.
Without giving details, the newspaper mentioned that of the steel production, 700,000 mt will be used for the production of beams, structural profiles and commercial profiles from 8 to 27 inches. In addition, 500,000 mt will be allocated to the production of rebar and wire rod.
Data from Canacero show that Deacero currently produces billet, rebar, wire rod, wire and derivatives, steel bars, commercial profile and structural profile.
Currently, the company's steel production capacity is more than 4.5 million mt per year.