Grupo Acerero (GASA), the fifth largest producer of rods in Mexico, completed the installation of certain equipment for a new plant to produce slab and later sheet steel plate. In particular, the assembly of the electric arc furnace (EAF) was completed. In addition, according to a report from the company, the arrival of continuous casting equipment began.
GASA, through its parent company Grupo Fonderia, will invest $150 million to build a new steel mill with the capacity to produce 650,000 metric tons (mt) of sheet steel plate. The EAF will produce slabs and later the plate will be produced. The input will be metal scrap that GASA partly collects through three of its own yards and purchases from third parties.
Other equipment already installed is some cranes and water treatment plants. A few weeks ago, sources of information that are familiar with the construction process of the new GASA steel mill told SteelOrbis that as of October 10, the Beskar Project, as the plant for the production of steel plate was named, was 72 percent complete.
In 2025, slab production will begin in April and it is expected that 150,000 mt will be manufactured in the first year. In 2026, production will increase by more than 160 percent to total 400,000 mt of slab for the year. In 2027, it will increase to 560,000 mt, and it will not be until 2028 when Beskar will be at its maximum production capacity with 650,000 mt.
GASA will continue to produce slab steel, but until 2027, when it will continue to import slabs. It is mainly purchased in Brazil, Vietnam, and Europe. By replacing imported raw materials for steel plate, the company's profitability will increase because currently the slab represents approximately 85 percent of the total production cost of the plate.
It will be until 2028 when GASA will be a vertically integrated steel company in its supply chain, from the purchase of metal scrap to the production of finished steel plate.