Mexican steelmaker Industrias CH (ICH) expects to increase its steel production in line with new energy reform and growth in the automotive sector.
Sergio González, chief financial officer of the company, said that the installed capacity of the company is around 6 million tons per year, however, with the construction of two automotive plants on the northern border of the country, capacity is set to increase 10 percent.
In March, the company announced the investment of nearly US$820 million in Mexico to build a pipe plant, which was contracted with a European equipment supplier and will have a capacity to produce 100,000 tons of pipe by early 2016.
While in the another production center, they injected US$720 million in a specialty steels manufacturing plant that will have the capacity to produce 600,000 tons of special steel for the sectors of automotive, energy, capital goods, tools and mining equipment. Its opening will be in early 2017.
“The project is of special steels to replace imports,” González said. “Mexico imports special steels for the automotive industry and this project is to supply the domestic market as it is growing.”
Industrias CH has more than 25 production facilities in the United States, along with Mexican facilities in Tlaxcala, San Luis Potosi, Coahuila, Guadalajara, and a plant under construction in Sao Paulo Brazil, which will begin operations later this year.
