SÃO PAULO Mexican steel service center Group Villacero SA de CV has postponed plans to construct a new long steel rolling mill due to the weak economic environment.
"At the moment, the investment is suspended due to changes in the economic climate, and we must have the flexibility to deal with these new challenges," chief executive officer Julio César Villarreal Guajardo told AMM sister publication Steel First this week on the sidelines of Alaceros 54th Latin American Steel Congress in Lima, Peru.
But the company does plan to resume the $350-million investment in 2015, Guajardo said, noting that "100% of this investment will stay in Mexico."
Villacero had previously said it was considering locations in northern Mexico and the southern United States for the plant.
The rolling mill will have the capacity to produce around 600,000 tonnes per year of reinforcing bar and wire rod.
Villacero is Mexicos largest steel distributor, with a total capacity of some 5 million tonnes annually.
A version of this article was first published in AMM sister publication Steel First.