MEXICO CITY Mexicos biggest integrated steelmaker, Altos Hornos de México (Ahmsa), officially commissioned its Fénix expansion project July 18.
Mexican president Enrique Peña Nieto put the Fénix Steckel mill into operation during the commissioning ceremony at Ahmsas facility in Monclova. "The Mexican steel industry has been and will (continue to be) an engine of economic growth," Peña Nieto said at the ceremony.
The project comprises a 1.46-million-tonne-per-year blast furnace, a 1.2-million-tonne electric-arc furnace, a 1.2-million-tonne slab caster and a 1-million-tonne plate mill, which together cost around $1.5 billion.
Ahmsas crude steel production will increase about 36 percent to around 4.75 million tonnes per year from 3.5 million tonnes currently.
"Thanks to the Fénix project, we will replace steel imports (in Mexico)," Ahmsa president Alonso Ancira Elizondo said.
Ancira Elizondo asked Peña Nieto for the opportunity to supply the steel needed for the Los Ramones natural gas pipeline project being built by state-owned oil and gas company Pemex.
The pipeline will need about 400,000 tonnes of steel pipe and will cost more than $3 billion, according to information from both Pemex and Mexican steel association Canacero.
A version of this article was first published by AMM sister publication Steel First.