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Big River weighing construction of mill to serve Mexico

May 31, 2017 | 07:00 PM | Fastmarkets AMM staff

Local media reports indicate that the proposed $1.5-billion mill would supply steel sheet from Brownsville, Texas to Mexican automakers.

Big River Steel LLC might build a new mill in Brownsville, Texas capable of supplying steel sheet on a just-in-time basis to Mexico’s automotive sector according to a local media report and a source familiar with the matter.

Brownsville is a finalist in competition to land the $1.5-billion mill, which has been nicknamed “Project America,” and which could mirror Big River Steel’s current operations in Osceola, Ark., the Brownsville Herald reported in a front-page article reposted on the Port of Brownsville’s website.

Big River started production at its Osceola mill in December and has since been ramping up output and diversifying product offerings from a facility expected to have initial capacity of 1.65 million tons before nearly doubling output to 3.2 million tons within 30 months.

The proposed new mill would produce 1.6 million tons of steel annually and consume 2 million tons of scrap yearly, of which 500,000 tons could be sourced locally, port chief executive officer Eduardo Campirano told the newspaper.