MEXICO CITY Mexican steelmaker Altos Hornos de México SAB de CV (Ahmsa) will officially start operations at its Fénix project in the second week of April, the company said.
The project includes a 1.46-million-tonne-per-year blast furnace, a 1.2-million-tonne-per-year electric-arc furnace, a 1.2-million-tonne-per-year slab caster and a 1-million-tonne-per-year plate mill, which together cost around $1.5 billion.
However, the overall project cost has reached $2.3 billion, including related investment in Ahmsas mining operations and the revamp of several facilities, a company spokesman told AMM sister publication Steel First March 27.
"(To feed the steel expansion) we have to produce more iron ore, more coal, have more transport (capacity), more maintenance, more electric energy, more (natural) gas, and all that demands parallel investments," the spokesman said.
The project will allow the steelmaker to boost its production capacity and improve its product mix for new markets, Ahmsa said. It is expected to boost crude steel production to 4.75 million tonnes per year from 3.5 million tonnes per year.
Ahmsa is Mexicos largest integrated steelmaker. Based in the northern city of Monclova, it produces slab, plate, hot-rolled coil, cold-rolled coil and tinplate, as well as heavy sections and beams.
A version of this article was first published by AMM sister publication Steel First.