Primetals Technologies, an engineering and plant construction developer for the metals industry, announced it has signed a deal with ArcelorMittal’s Mexican subsidiary to supply a hot strip mill and a hot skin pass mill for the production site located in Lazaro Cardenas, Michoacan, on the Pacific coast. This investment will enable to process the steel slabs produced on the same site.
Although the financial terms of the purchase order were not disclosed, it is known that ArcelorMittal Mexico S.A. de C.V will invest a total US$ 1 billion over the next three years to expand its operations.
Primetals Technologies Limited, is a company based in London, UK, that emerged in 2015 from a joint venture between Siemens VAI Metals Technologies and Japan’s Mitsubishi Hitachi Metals Machinery (MHMM).
The hot strip mill will be erected on a turn-key basis, including power supply, mechanical equipment, drives and automation, in order to improve efficiency, stability and product quality across the production route.
The project will be executed in an open consortium with Mexican contractors LOMCCI S.A. de C.V and WP Constructora S.A. de C.V., which are based in Huixquilucan, State of Mexico and Tlaquepaque, Jalisco, respectively.
The hot strip mill is designed for a production capacity of 2.5 million metric tons per year, while the hot skin pass mill is designed to process 650,000 tons per year. The start-up of the hot strip mill and the hot skin pass mill is planned for 2020.
ArcelorMittal Lazaro Cardenas is Mexico’s largest steel producer and slab exporter. The company uses Direct Reduced Iron (DRI) as its primary metallic input for steelmaking. This results in higher quality slabs with a uniform grain structure. Its liquid steel production capacity is 5.3 million metric tons per year, while slab production capacity currently amounts to 3.8 million metric tons per year.
WP Constructora will be responsible for the basic and detail engineering for the steel structure bay buildings, pipe and cable racks, the HVAC and the fire-fighting system, supply and installation of steel structure, HVAC and fire-fighting system, the installation of mechanical and electrical equipment including the water treatment plant, and the supply and installation of piping and cables.
LOMCCI will carry out the detail engineering for piling and concrete foundations, the basic and detail engineering for concrete and masonry buildings, the demolition of existing concrete structures and the civil construction of equipment foundations as well as of concrete and masonry buildings.