Northern Mexico will receive $35 million in new investment dollars from nitrogen and oxygen supplier Air Liquide. The funds will be used to build a new Air Separation Unit and a Steam Methane Reformer for steel manufacturers Ternium and Tenigal in the town of Pesquería,which lies in the state of Nuevo León.
“We are very pleased to be expanding our business in Mexico alongside companies like Ternium and Tenigal,as it reflects upon Air Liquide’s growing presence in northern Mexico,” stated Michael Graff,president and CEO of American Air Liquide Holdings. “This country is the 15th largest economy in the world,and growth in its industrial gas market is expected to continue well into the future due to robust industrial and manufacturing activity in the northern states.”
The company also expects Mexico real estate to continue to offer strong prospects for growth due to its close proximity to the U.S. Air Liquide entered Mexico is February of 2011 to take advantage of this unique opportunity.
The announcement of the company’s latest investment plans comes after it entered into a long-term agreement with the steel manufacturers. Air Liquide is planning to build and operate the new Air Separation Unit and Steam Methane Reformer near Ternium’s new facility. The operations will also include a cold rolling mill and a galvanizing unit,which is a joint venture with Tenigal,Ternium and Nippon Steel.
The new facilities are scheduled to begin operations by the middle of 2013,around the same time that the steel manufacturers will ramp up for commercial production. The new units will employ a cost effective,modular design with a compact layout focused on simple operations and ease of maintenance.
This investment will effectively triple Air Liquide’s production capacity in Mexico,making the supplier one of the country’s biggest players in its growing industrial gas market. The company also plans to strengthen its supply chain infrastructure to include new customers in other industries throughout Mexico,including glass and automotive corporations.