ArcelorMittal to invest more than US $11 million in Mexican tubular facility

29 September 2015

ArcelorMittal today announced a US$11.1m investment into its premier tubular facility in Monterrey, Mexico, to enhance product capabilities for the North American automotive market.

The investment will go towards the construction of an additional world-class tube mill and addition of downstream value-add processing equipment, which will allow the facility to supply high-quality straight and formed tubes for use in the production of automotive seating and head rest applications.

Construction has started and is expected to be completed in the spring of 2016. Once finalised, ArcelorMittal Monterrey will be able to produce electric resistance welded (ERW) tubes ranging from 11mm to 165mm in a variety of steel thicknesses and steel grades – from mild carbon designs, to advanced high-strength steels (AHSS) popular within the automotive sector. The expansion will add more than 80 new jobs.

“ArcelorMittal has enjoyed a strong position in supplying tubes to the Mexico region since 2000”, said Ed Vore, chief executive officer, ArcelorMittal Tubular Products, Nafta: “This latest investment in new equipment and our people is consistent with ArcelorMittal’s aim to further grow our footprint and leadership position in the automotive sector – a market that continues to show remarkable growth, both in Mexico and the southeastern United States”.  

The project complements and expands the company’s product portfolio for demanding applications at Monterrey, which includes tubular products including hydroform tubes, drive shafts, rectangular, rounds and specialised shapes.

A cold-sizing welding process allows the facility to meet the highest-quality non-destructive testing requirements. Existing facilities include three tube mills and various value-add operations including bending, laser cutting and angle cutting. In addition to its tubular business, ArcelorMittal Monterrey provides steel slitting services and steel distribution services.