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Argus Media Limited

07/28/2023 | News release | Distributed by Public on 07/28/2023 13:41

Striking workers cause coker complications: AHMSA

Mexican steelmaker Altos Hornos de México (AHMSA) is citing the presence of striking workers for damage to one of the cokers at its Monclova site in Coahuila state.

The company today said that striking workers from the Sindicato Nacional Minero, which represents the steelworkers at AHMSA, are blocking access to coking plant #1 at the Monclova site.

The strike, AHMSA said, is hindering maintenance and made it impossible for the coker to be maintained at the proper temperature.

As a result of problems with the coker, the site returning to normal production is postponed "indefinitely" and the process of a new group of investors taking control of the company has been "complicated."

The embattled company ceased operations at the Monclova site in early December, after state electricity company CFE cut power for nonpayment of Ps154.9mn ($7.8mn) in electricity bills. In April, New York-based fund Argentem Creek Partners agreed to purchase a 55pc stake in AHMSA from former chairman Alonso Ancira for $200mn.

It was unclear whether any money changed hands or a timeline for a return to operations was proposed until early June, when Mexican president Andres Manuel López Obrador called on "serious" investors to take over the company. In July, López Obrador in July again called on Ancira to accept investor offers, offering to restructure the "considerable" debt he owes to the government and set up a payment plan with a new owner. Ancira is also indebted to the tax administration and Pemex.

By Marialuisa Rincon