ArcelorMittal plans to invest $1 billion over the next three years in Mexico.
The global steelmaker, the world’s largest by volume, announced it would invest heavily in mining and steelmaking in Mexico, where many U.S. automakers have been shifting small car production. Luxembourg-based ArcelorMittal, one of Northwest Indiana’s largest employers, plans to construct a new hot strip mill that will boost its productivity in Mexico from 4 million tons a year to 5.3 million tons a year.
ArcelorMittal recently invested $200 million in improvements at its Indiana Harbor steel mill, including upgrades to the “Mighty 80” 80-inch hot strip mill on the east side. But it also idled many finishing lines there, including the hot strip mill at the former LTV mill on the west side. The steelmaker accounts for about two-thirds of the 15 million tons of steel produced in Northwest Indiana annually.
Lakshmi Mittal, chairman and CEO of ArcelorMittal, said the investment would create 800 new jobs in Mexico.
Mittal said the company’s investment aligned with the Mexican government’s objectives will enable the firm to benefit from the anticipated increased demand for higher-added value steel products from domestic Mexican customers.
The steelmaker estimates it will be able to produce 2.5 million tons of flat rolled steel, 1.8 million tons of long steel and 1 million tons of semi-finished slabs a year in Mexico after completing the investments.