Mexican long steelmaker Deacero expects to invest $300 million in the next two years, a company executive said this week.
The expected investment is aimed to help it add more products to the company’s existing portfolio at the same time the steelmaker meets a growing demand for steel. Part of this demand has been driven by the booming Mexican automotive industry.
Raul Gutierrez Muguerza, director general at Deacero, said the company is now more “confident” to make such investments, following recent AD and CVD measures by the Mexican government, which are seen as positive signs by local steel producers.
“We’ll be expanding some production lines to add more products [to the company’s portfolio]. We’ll have a project for a Japanese company in the automotive sector, so we’ll invest part of the resources there,” he said, despite not disclosing details about the project.
The executive added Deacero has a 4 million mt/year capacity and is currently working at 66 percent of its total capacity.
Despite the announced investments, Muguerza admitted the resources won’t increase much of the company’s current production capacity.