Officials from the city of Lazaro Cardenas have forcefully entered ArcelorMittal Mexico’s mill in the city and have partially shut it down, SteelOrbis has learned. Lazaro Cardenas city officials did not explain which areas were shut down on Thursday.
The city of Lazaro Cardenas said the ArcelorMittal Mexico mill had been operating irregularly, as it lacked an operational license and failed to pay city taxes. Officials also argued the mill did not present an internal civil protection program or an action plan in case of an emergency. Officials said they have sealed the undisclosed areas that cannot operate.
In a statement, ArcelorMittal Mexico denied any wrongdoing, saying it has met its obligations as required by law. The company also said it has been paying city taxes every two months, as allowed in city regulations.
ArcelorMittal Mexico said the shutdown was partial and provisional, but didn’t provide an estimate on when it could resume the undisclosed halted areas.
The affected mill produces both flat and long steel products and operates an integrated EAF route using DRI. In a recent SEC filing, it claimed to have one of Mexico’s “largest single rebar and wire rod production facilities,” located in Lazaro Cardenas.