Mexico’s Deacero to add to green steel portfolio with new plant

The June construction startup of a new steel plant in Deacero's complex in Ramos Arizpe, in the northeastern Mexican state of Coahuila, will position the company to meet future demand for lower-carbon steel nationally and abroad, a Fastmarkets analyst said on Monday June 17

Deacero said in a statement on June 5 that its investment of about $600 million in a new steel plant, where production is projected to begin in February 2026, will add 1 million tonnes of new steel output to the existing production at its facilities, located 182 miles from Laredo, Texas – the main port of entry for Mexican steel imported to the US.

“With that investment, Deacero is not only fully embracing green steel and adding to its Neutrum catalog, but also capitalizing on potential North American demand from near-shoring,” Fastmarkets analyst Felix Bello said. The Neutrum brand refers to the reduced-carbon steel products offered by the company, which is one of Mexico’s leading wire producers.

“In addition, the move will allow Deacero to potentially meet and exceed legislative and regulatory requirements being placed on steel worldwide. All in all, it checks all the boxes for the challenges and opportunities that steel faces,” Bello added.

The project, known as Ramos 2, consists in the construction of new steel production facilities and “a rolling mill to produce structural profiles of up to 27 inches,” the company said in a statement.

Production will rely on an electric-arc furnace (EAF), in a process that consumes scrap metal and has seven times fewer carbon dioxide (CO2) emissions compared with a fossil energy-based blast furnace, the company said.

This will cover Mexican domestic demand for long steel products and help eliminate imports, Deacero said. The investment in the Ramos Arizpe facilities since 2011, including the new plant, adds up to up to $1.3 billion so far, the company said in its June 5 statement.

The structural profiles will serve support manufacturing, as well as the oil and gas industries and ship construction, the statement said.

Equipment supplier Danieli said in November 2023 that it had been selected to supply the project. At the time, sources for scrap metal in Mexico said they expected some impact on scrap prices after the start-up. Deacero is one of Mexico’s main scrap metal consumers.

Deacero produces around 4.5 million tonnes per year of steel products including rebar, wire rod and other products.

Besides Ramos Arizpe, the company’s production facilities include plants in Saltillo, Coahuila, as well as near Celaya, Guanajuato.

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