ArcelorMittal has delayed the completion of two projects at its Mexico and Brazil facilities, due to the exceptional circumstances generated by COVID-19 related shutdowns.
The steelmaker noted it will delay the development of a hot strip mill in Mexico from the second half of 2020 to 2021. The resumption of the Vega Do Sul expansion project at ArcelorMittal in Brazil will also be delayed from 2021 to 2023, the company said in a statement, adding that given the exceptional circumstances work on both these projects has slowed down.
The hot strip mill expansion project in Mexico is part of a $1bn investment, which was announced in September 2017. The project will enable ArcelorMittal Mexico to produce 2.5mn mt of flat-rolled steel and long steel. The coils from the new hot strip mill will be supplied to domestic, non-auto, and general industry customers.
The resumption of the Vega Do Sul expansion project in Brazil is part of a $330mn investment, which was announced in August 2018.
The project includes construction of a new continuous annealing line and a continuous galvanizing combine line.
The unit’s capacity is set to increase by 700,000mt to a total of 2.1mn mt per year and increase production for the automotive, construction, and home appliances sectors at the Vega unit, after the completion of this project.