Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Mexican steelmaker Deacero and Swedish equipment manufacturer SFK have developed a partnership to improve the performance and reduce downtime at Deacero’s Celaya rolling mill.


Under the partnership, SFK will provide Deacero covering bearings, bearing remanufacturing, maintenance services, engineering, and tool application services, according to a media statement released by SKF on September 21.


Deacero plans to reduce maintenance costs and improve steel production at its Celaya rolling mill, the local media reported. Although the companies did not disclose the investment involved in the partnership, SKF said that the agreement was a fee-based one that covered the scope of the work and materials it would provide to the Mexican steelmaker.


Ivan Martínez, central negotiation Director at Deacero pointed out that the current market trends were driving manufacturers to improve quality, reduce costs, and just-in-time production prompting Deacero and SKF to forge the partnership.


Deacero, which operates 26 distribution centers in North America and 17 steel plants, has an annual capacity of 4.5mn mt of long steel products and 1.4mn mt of wire rod.


Mexico’s crude steel output declined by 22.6pc to 1.15mn mt in July this year, from 1.48mn mt produced in the same month in 2019, according to the latest figures released by the World Steel Association.



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