Monterrey, Mexico-based Deacero S.A. de C.V. is constructing a wire rod and rebar production facility at its Saltillo mill complex that will increase its long products output to 4 million tons per year.
The new electric arc furnace (EAF) equipment will have a crude steel production capacity of 1.5 million tons per year and additional rolling capacity of 800,000 to 1 million tons per year, according to a report from Industrial Info Resources (IIR) Sugar Land, Texas.
Deacero’s current schedule calls for the facility to be commissioned by 2011. Italy’s Danieli S.p.A has been awarded supply contracts for the plant and machinery required to set up the production facility, according to IIR.
Danieli will supply a 6-strand continuous casting machine (CCM) and a 150-ton electric arc furnace.
Deacero has also been in the process of working with U.S. Shredder and Castings Group, Trussville, Ala., to install an automobile shredding plant at Deacero’s facility in Mexicali, Mexico. The system has been designed to process and separate ferrous and nonferrous metals.
In 2006, the company commissioned a wire rod-rolling unit at its facility in Celaya, Mexico, at a cost of $220 million, according to IIR. That expansion, which increased Deacero’s production capability from 1.7 million tons per year to 2.7 million tons per year, also included steelmaking equipment supplied by Danieli.
Deacero CEO Raul Gutierrez has indicated that the company will take stock of the global economy and the recovery of the steel industry before going ahead with its planned investments or restarting certain facilities.
The Mexican steel company operates 10 production facilities and 13 distribution hubs in 20 different countries.