ArcelorMittal, the world’s largest steelmaker, has not changed its plan to invest $1 billion dollars in a new production line in Mexico despite uncertainty in terms of trade in North America.
Since ArcelorMittal announced the investment in September, talks initiated by U.S. President Donald Trump to renegotiate the North American Free Trade Agreement have bogged down, and Trump stirred fears of a global trade war on Thursday by announcing plans for steep tariffs on steel and aluminum imports.
ArcelorMittal said 80 percent of the steel the company produced in Mexico was destined for the local market, with the remaining 20 percent exported to the United States, Canada and other markets.
The company said it would keep working in the same way and the investment would take place over three years. The investment covers construction of a new hot strip mill, which upon completion in about three years will allow annual production of 2.5 million tonnes of flat-rolled steel.