MONTERREY, Mexico The Mexican steel industry is expected to see investments totaling $6.93 billion between 2012 and 2014, a senior government official said at AMMs 18th annual Mexican Steel Forum.
That would be nearly the same level of investment achieved between 2007 and 2011 and more than double the $2.99 billion invested between 1999 and 2006, Jesús Serrano Landeros, director of heavy industries and high technology for the Mexican ministry of economy, told delegates.
The higher rate of investment has helped contribute to Mexicos rising prominence in the global steelmaking industry, he said.
"In 2011, Mexico was the 13th-biggest steel producer in the world and the second in Latin America. (Steel) production in 2011 accounted for 5.4 percent of Mexicos manufacturing gross domestic product," he said.
The steel industry is key in Mexico, especially as it feeds the countrys strong automotive sector, which is expected to invest almost $16 billion and create 10,000 jobs over the next few years, Serrano Landeros said.
"Mexico will have production capacity of 4 million vehicles in 2017, making it the seventh-largest producer and the third-largest exporter in the world," he said.
Mexican vehicle output reached 2.88 million units for the whole of 2012, up 12.8 percent from 2.5 million units in 2011, according to the Mexican auto industry association Amia.
A version of this article was first published by AMM sister publication Steel First.