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ArcelorMittal Mexico blast furnace at risk due to worker blockade

Monday, 03 June 2024 09:28:27 (GMT+3)   |   San Diego
       

A group of unionized workers from ArcelorMittal's Mexican unit blocked the passage of other workers who operate the 2.4 million metric ton (mt) annual capacity blast furnace and workers at iron ore mines. There is also a strike call, the company reported in a statement.

The blockade of the steel plant's accesses began on May 25 which might result in the uncontrolled cooling of the blast furnace, “which would cause a significant risk to its operational continuity and a very serious impact to the source of work on which more than 8 thousand direct and indirect collaborators depend today,” the company said in a press release.

The blast furnace is located in the western city of Lázaro Cárdenas, Michoacán. Its production capacity is 2.4 million mt per year, which in those six days of blockade would have stopped producing around 55,000 mt of liquid steel for the production of long steel; rebar and wire rod.

The blockade also affects iron ore extraction.

ArcelorMittal also reported that on Tuesday (May 28) it was notified by the workers' union to call for a strike starting June 4, in case an agreement is not reached between the parties.

As there was no official strike, ArcelorMittal warned that the obstruction of access to the steel plant and the mining complex “are totally outside of the legal framework”.

The company requests the intervention of the corresponding authorities to ensure free movement and job security amid illegal blockades.

In 2023, ArcelorMittal México produced 3.9 million mt of primary steel and 4.5 million mt of iron ore.


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