ArcelorMittal postponed the investment of $150 million in the Mexican Las Truchas

ArcelorMittal Corporation, one of the largest steel producers in the world, has postponed an investment of $150 million in the Mexican mining complex Las Truchas in Michoacán. SteelOrbis reports about it.

Bureaucracy and disruptions in the delivery of equipment have delayed investment in increasing production pellets by almost 80% for more than a year.

In 2021, ArcelorMittal announced that it plans to invest $150 million to increase annual capacity by 1 million tons – to 2.3 million tons. At that time, the company predicted that the project would be implemented in the second half of 2023.

But the company said last week that the project’s launch date has been pushed back to the second half of 2024 due to slower progress in equipment deliveries and construction work, as well as delays in obtaining the necessary building permits.

In addition to investments in the project in Michoacán, the implementation of the construction of the production complex in Serra Azul, Brazil, is also delayed. The company plans to invest $350 million to produce 4.5 million tons of direct reduction pellets, part of which will be delivered to Mexico. The launch of the project is planned for the second half of 2024.

As GMK Center reported earlier, ArcelorMittal in 2022 reduced iron ore production by 9.2% compared to 2021. Sales of iron ore reached 28 million tons, which is 7.7% more y/y.

The company’s net profit for the year decreased by 37.8% compared to 2021 – to $9.302 billion. EBITDA decreased by 27% y/y – to $14.16 billion, and revenue increased by 4.3% y/y – up to $79.84 billion.

ArcelorMittal is a leading global steel and mining company with presence in 60 countries and production assets in 18 countries.