Mexican integrated steelmaker Altos Hornos de Mexico (AHMSA) said prospects for the company are currently improving, following a period of intense restrictions. Jorge Ancira Elizondo, deputy general of administration, said the company has already left its worst phase behind.
Elizondo said a court decision to freeze the company’s accounts has had a severe impact in the company.
“The negative financial impact of an ungrounded action was multiplied by other unfavorable factors, as declining domestic demand, and a strong decrease in international (steel) prices,” he said, adding all these factors “forced” the company to take extreme measures.
Elizondo said the company is now recovering its “trust” among credit providers and clients, and it has managed to get its first “resources,” which indicates the company had probably contracted one or more loans.
AHMSA said its focus is to reduce the timeline for paying suppliers, especially local ones, and continue with key investments, including a new coking plant at its No. 2 steelworks.
The coking plant will require $250 million in investments and construction works should begin in 2020, AHMSA estimated.