Deacero to build fifth mini mill in Mexico

4 December, 2023 by

Grupo Deacero, Mexico's leading metal scrap recycler and steel producer, is set to bolster its capabilities with the construction of a fifth mini steel mill in Ramos Arizpe, Coahuila, as reported by Italian technology provider Danieli in a recent press release.

The project, which will contribute an additional capacity of 1.5 million metric tons (mt) to Deacero's operations, will focus on producing large sections, with a particular emphasis on items up to 27 inches. Danieli, a key player in steel technology, highlighted that this marks the fifth collaboration between the technology provider and Deacero.

The new mini mill boasts a 150-ton "Zero-Man-Around" Electric Arc Furnace (EAF) with an automated raw material supply system, reflecting advancements in efficiency and automation.

This development follows the announcement last September that Grupo Deacero's fourth mini steel mill, also utilizing Danieli technology, would be established in the same city. The startup for the fifth mini mill is slated for the first quarter of 2026 in Ramos Arizpe, strategically positioned just 45 miles west of Deacero's headquarters in Monterrey, Nuevo León.

While the specific investment details remain undisclosed, reports from September suggested a substantial investment of $1.0 billion by the company for expanding its steel mills in Guanajuato and Coahuila.

The increased production capacity will be allocated to the manufacturing of beams, structural profiles, commercial profiles, as well as long products like rebar and wire rod. Currently, Deacero's diverse production portfolio includes billet, rod, wire rod, wire and derivatives, steel bars, commercial profile, and structural profile.

Data from Canacero underscores that Deacero's existing steel production capacity exceeds 4.5 million mt per year. In addition to its robust production facilities, the company owns over 20 metal scrap collection and processing centers, demonstrating its commitment to sustainable practices. Notably, Deacero recently affirmed its dedication to efficient scrap processing by acquiring five powerful scrap metal shredders from Danieli, further enhancing its recycling capabilities.

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