Steel Mills

Blockade of AHMSA Coke Plants to Delay Production Restart


Mexican steelmaker Altos Hornos de México (AHMSA) said there could be an “indefinite” delay to the restart of production because of a blockade by activists.

ahmsa logo

The company said its steel plants in Monclova, Coahuila state, were blockaded by activists of the Sindicato Nacional Minero (National Mining Union), which represents AHMSA’s striking workers, according to a press release on Twitter from July 28.

AHMSA said it could not supply gas to maintain the temperature of the furnaces in coking plant #1 as a result of the blockade. The cooling process caused damage, the company said, “which will indefinitely delay the restart of production.” 

The steelmaker added that this will result in “complicating the process of takeover by new investors.”

Recall that production has been shut down at AHMSA since December. The company announced an agreement in late February to sell the majority of its shares to a group of foreign investors to recapitalize the company. The shareholder was later revealed as credit specialist firm Argentem Creek Partners. However, uncertainty around the sale has remained, as Argentem has also asked the Kickapoo Tribe of Texas for financing for AHMSA.

A spokesman for AHMSA could not be reached for comment. A spokesperson for Argentem Creek could not be reached by time of publication. 

By Ethan Bernard, ethan@steelmarketupdate.com

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