Deacero to add EAF capacity in Mexico

Monterrey, Mexico-based electric arc furnace (EAF) steel producer Deacero will be investing to add about 1.2 million tons of capacity at two of its steelmaking complexes in Mexico.

A notice posted to the firm’s website refers to an investment of $1 billion in the next three years to build a new steel mill and acquire machinery and equipment to strengthen the operation of its current plants in Saltillo, in Coahuila, and in its Celaya Industrial Complex, in Guanajuato. The state of Coahuila is in northeastern Mexico while Guanajuato is in the central part of the country.

“The purpose is to promote regional development and increase the production capacity of the business units with investments destined for the national market,” Decero President Raúl Gutiérrez Muguerza says.

The executive cites the nearshoring trend in manufacturing as providing a market for the steel to be produced, saying Deacero’s decision to add capacity “promotes the growth of business partners and clients.”

Deacero, in a leaflet touting its Leadership in Energy and Environmental Design (LEED) credentials to the construction sector, says its steel wire is 100 percent recycled and 100 percent recyclable, using a process that involves purchasing scrap steel, melting and pouring, drawing rod and wire, and manufacturing finished products.