Altos Hornos de México

Last updated
Altos Hornos de México S.A.B. de C.V.
Type Private
Industry Metals
Founded1942;81 years ago (1942)
Headquarters Monclova, Coahuila
Key people
Argentem Creek Partners
Products Steels
mining
engineering
Total equity Bankrupted
Number of employees
22,250 (2016) [1]
Subsidiaries List of subsidiaries
Website www.ahmsa.com

Altos Hornos de Mexico, S.A.B. de C.V. (AHMSA) is a steel plant in Mexico. It has corporate offices in Monclova, Coahuila, in the center of the Mexican state of Coahuila, 155 miles from the United States border.

Contents

History

Teódulo Flores Calderon donated the land to AHMSA, later Harold Rudolph Pape founded Altos Hornos de Mexico in 1942 in Monclova, Coahuila for its proximity to the border, with the mines of iron located in the same state and Chihuahua, as well as with coal, located in the carboniferous region of Coahuila.

Between 1944 and 1948, the production increased from 40,000 to 100,000 tons of liquid steel per year. In 1960, the smelter increased its capacity to 2 million tons of liquid steel per year, with this being consolidated as the largest company industry in Latin America. Throughout the decade of the '70s and after several expansions, the company achieved production of 3.75 million tons per year. In the decade of the '80s, AHMSA was nationalized by the federal government and went through several crises.

In 1991,  Altos Hornos was under new management by Alonso Ancira, but his tenure was marked by a series of fraudulent activities that eventually led to the bankruptcy of Altos Hornos de México (AHMSA). He orchestrated one of the largest scams in Mexican history and was subsequently arrested by Interpol on charges of fraud, corruption, and money laundering. Ancira's involvement in the Pemex, Agro Nitrogenados, and Odebrecht frauds further solidified his culpability. The fraudulent transaction amounted to $500 million, with the plant itself being revealed as nothing more than a sham. Ancira is now obligated to repay the stolen funds to the Mexican Government, as his actions have resulted in AHMSA declaring bankruptcy. [2]

In April 2023, Ancira was ousted from the presidency of AHMSA, which is now in the hands of Argentem Creek Partners, an American fund that is facing the challenge of reviving a company on the brink of collapse. Ancira resigned along with members of the Board of Directors, including Jorge Alberto Ancira Elizondo, José Eduardo Ancira Elizondo, James Pignatelli, Juan Carlos Quintana, and Francisco Pérez Ortega. [3]

AHMSA was sold to Argentem Creek Partners in April 2023 and is now run by new management. Despite the sale to Argentem Creek Partners, the steel company continues to have a debt of $650 million. [4] [5]

Alonso Ancira’s fraudulent activities

Alonso Ancira Elizondo, the former president of AHMSA from 1991-2023, is known for leading one of the largest scams in the history of Mexico, defrauding the Mexican government of $500 million. He is responsible for his involvement in the Pemex, Agro Nitrogenados, and Odebrecht frauds, as well as his mismanagement that led to the bankruptcy of Altos Hornos de México (AHMSA). Additionally, he has been accused of corruption, tax fraud, and money laundering. [6] [7]

The Pemex case originated in 2013 when Alonso Ancira, his brother Jorge Ancira of Altos Hornos de México (AHMSA), and Emilio Lozoya, who served as Pemex's director, engaged in fraudulent activities. They orchestrated the sale of a non-existent plant to the Mexican government, valued at just a few million dollars. However, in 2019, the Superior Audit Office uncovered that the transaction had far exceeded its actual cost. Consequently, Ancira was arrested for fraud in Spain in 2019 and subsequently extradited to Mexico in 2021. [8] [9]

Furthermore, it came to light that during his management, the plant had been abandoned, with machines turned off for years. The 17,000 employees who worked at AHMSA had not received salary payments for four years.

Despite being in debt, Ancira still owes various areas of the federal government, such as the Tax Administration Service, Pemex, and the Federal Electricity Commission. AHMSA has debts with various areas of the federal government, including the Tax Administration Service, Petróleos Mexicanos, the Federal Electricity Commission, the National Workers' Housing Fund Institute, and the Mexican Social Security Institute, among others. [10] [11]

Ancira had faced previous arrests for his mismanagement and corrupt practices at Altos Hornos de México (AHMSA). In 2004, he and his family members were charged with tax fraud in Mexico, prompting them to flee the country after arrest warrants were issued by the Attorney General's Office (PGR). To avoid capture, Ancira relocated to Israel on two occasions with his family and resided there for three years while being pursued by the Ministry of Finance. [12] [13]

Activity

Ahmsa’s main steelmaking facilities and corporate offices are located in Monclova, Coahuila, close to transportation lines, raw materials supplies, principal points of export, and the company’s major domestic markets.

Primary resources

Two steel plants operate in an area of nearly 3,000 acres. AHMSA extracts coal and iron ore. The company has its own coal mines in Palau, located 70 miles from Monclova. Once extracted, the washed coal is shipped by railroad to AHMSA’s coke plants.

The main source of iron ore is located in Hercules, Coahuila, a mine owned by AHMSA. From that point the iron ore is transported to AHMSA through a 180-mile pipe (called Ferroduct) that crosses the Coahuila desert. The Company also has iron ore mines in some other Mexican states.

Products

AHMSA manufactures high value-added steel products. AHMSA is a national leader in the production and commercialization of flat steel products including hot rolled coil used for machinery parts, wide plate, cold rolled coil, tinplate and tin-free steel, railroad tanks and bridge constructions, structural shapes... It also produces non-flat steel products like heavy shapes.

AHMSA operates at an annual production rate of 3.5 million metric tons of liquid steel, with a workforce of 22,250 people, including its subsidiary companies.

Subsidiaries

As of April 2014, its subsidiaries included: [14]

Quality

AHMSA received the following quality labels :

AHMSA also complies with the following standards :

Since 1992, AHMSA leads an active social policy where its plants are active, maintaining permanent programs on the following fronts:

These policies and activities have positioned AHMSA and its companies as benchmarks in the field of Mexican steelworks and mining, establishing it as an example of high social responsibility

Ticker Symbols

AHMSA; IAM (ADR)

NAICs Codes

Related Research Articles

<span class="mw-page-title-main">Coahuila</span> State of Mexico

Coahuila, formally Coahuila de Zaragoza, officially the Free and Sovereign State of Coahuila de Zaragoza, is one of the 32 states of Mexico.

<span class="mw-page-title-main">Monclova</span> Place in Coahuila, Mexico

Monclova, is a city and the seat of the surrounding municipality of the same name in the northern Mexican state of Coahuila. According to the 2015 census, the city had 231,107 inhabitants. Its metropolitan area has 381,432 inhabitants and a population density of 29.88 inhabitants per square kilometer. Monclova is the third-largest city and metropolitan area in the state in terms of population, after Torreón and Saltillo.

<span class="mw-page-title-main">Vale S.A.</span> Multinational diversified metals and mining corporation

Vale S.A., formerly Companhia Vale do Rio Doce is a Brazilian multinational corporation engaged in metals and mining and one of the largest logistics operators in Brazil. Vale is the largest producer of iron ore and nickel in the world. It also produces manganese, ferroalloys, copper, bauxite, potash, kaolin, and cobalt, currently operating nine hydroelectricity plants, and a large network of railroads, ships, and ports used to transport its products.

<span class="mw-page-title-main">Peñoles</span> Mexican mining company (1887–)

Peñoles is a subsidiary company owned by Grupo BAL. Peñoles is the second largest Mexican mining company, the first Mexican producer of gold, zinc and lead and the world leader in silver production. Peñoles is a company with active mines within Mexico and with some prospection projects in South America. Holdings includes the Fresnillo Silver Mine / Mina Proaño, the Met-Mex Peñoles metallurgical complex and Química del Rey; a Chemical facility; three operations. Peñoles produces about 80,500,000 troy ounces (2,500,000 kg) of silver and 756,100 troy ounces (23,520 kg) of gold annually. Other metals that the company produces are zinc, lead, copper, bismuth, and cadmium.

Mina de Barroterán coal mine disaster occurred on March 31, 1969, and 153 miners were killed. This was the second worst disaster in Mexico's coal mining history, second only to the Mina Rosita Vieja disaster of 1908.

<span class="mw-page-title-main">National Mineral Development Corporation</span> Indian public sector mining company

NMDC Limited, formerly National Mineral Development Corporation, is an Indian public sector undertaking involved in the exploration of iron ore, copper, rock phosphate, limestone, dolomite, gypsum, bentonite, magnesite, diamond, tin, tungsten, graphite, coal etc. It is India's largest iron ore producer and exporter, producing more than 35 million tonnes of iron ore from three mechanized mines in Chhattisgarh and Karnataka. It also operates the only mechanized diamond mine in the country at Panna in Madhya Pradesh.

Grupo México is a Mexican conglomerate that operates through the following divisions: Mining, Transportation, Infrastructure and Fundacion Grupo Mexico.

Palaú is a town in the Mexican state of Coahuila. It is located on the eastern boundary of the Chihuahuan Desert, in the municipality of Múzquiz. Temperatures in the summertime can easily reach 45 degrees Celsius and the winters are mild but wet. The main industry is coal mining.

Alonso Ancira Elizondo is a Mexican businessman who is the controlling shareholder and chairman of Altos Hornos de Mexico (AHMSA). He purchased AHMSA from the Mexican Government in 1991, when the government privatized the steel industry. In March 2006, he was elected as president of the Iron and Steel Mexican Chamber (CANACERO) for the years 2006-2007.

Cleveland-Cliffs Inc., formerly Cliffs Natural Resources, is a Cleveland, Ohio-based company that specializes in the mining, beneficiation, and pelletizing of iron ore, as well as steelmaking, including stamping and tooling. It is the largest flat-rolled steel producer in North America.

<span class="mw-page-title-main">Mining industry of Nigeria</span>

The mining of minerals in Nigeria accounts for only 0.3% of its gross domestic product, due to the influence of its vast oil resources. The domestic mining industry is underdeveloped, leading to Nigeria having to import minerals that it could produce domestically, such as salt or iron ore. The rights to ownership of mineral resources is held by the Federal Government of Nigeria, which grants titles to organizations to explore, mine, and sell mineral resources. Organized mining began in 1903, when the Mineral Survey of the Northern Protectorates was created by the British colonial government. A year later, the Mineral Survey of the Southern Protectorates was founded. By the 1940s, Nigeria was a major producer of tin, columbite, and coal. The discovery of oil in 1956 hurt the mineral extraction industries, as government and industry both began to focus on this new resource. The Nigerian Civil War in the late 1960s led many expatriate mining experts to leave the country. Mining regulation is handled by the Ministry of Solid Minerals Development, who are tasked with the responsibility of overseeing the management of all mineral resources in Nigeria. Mining law is codified in the Federal Minerals and Mining Act of 1999. Historically, Nigeria's mining industry was monopolized by state-owned public corporations. This led to a decline in productivity in almost all mineral industries. The Obasanjo administration began a process of selling off government-owned corporations to private investors in 1999. The Nigerian Mining Industry has picked up since the "Economic Diversification Agenda", from Oil & Gas, to Agriculture, Mining, etc., began in the country.

<span class="mw-page-title-main">ALFA (Mexico)</span>

Alfa S.A.B. de C.V., also known as Alfa or Alfa Group, is a Mexican multinational conglomerate headquartered in Monterrey, Mexico. It is a diversified group of businesses, mainly industrial, that produces petrochemicals, aluminum auto components, and refrigerated foods. It also participates in the extraction of oil and natural gas, and offers IT & telecom services. It is the global leader in the production of engine blocks and cylinder heads for American and European automakers; it is one of the largest PET and PTA producers in North America; and it is also a leader in the distribution of refrigerated foods in Mexico. In 2013, it was the seventh largest company of Mexico according to CNN Expansión.

<span class="mw-page-title-main">Steel industry in China</span> Overview of the steel industry of China

The steel industry in China has been driven by rapid modernisation of its economy, construction, infrastructure and manufacturing industries.

<span class="mw-page-title-main">JSW Steel</span> Indian multinational steel company

JSW Steel Limited is an Indian multinational steel producer based in Mumbai and is a flagship company of the JSW Group. After the merger of Bhushan Power & Steel, Ispat Steel and Jindal Vijayanagar Steel Limited, JSW Steel became India's second largest private sector steel company.

<span class="mw-page-title-main">Sierra Menera</span>

Sierra Menera is a 31 km (19 mi) long mountain range in the southwestern end of the Iberian System.

Metinvest is an international group of steel and mining companies that owns operations in Ukraine, Italy, Bulgaria, the UK and the US, mines ore and coal, produces coke, smelts steel and produces rolled products, pipes and other steel products. The group's assets are managed by Metinvest Holding LLC.

<span class="mw-page-title-main">Coal mining in Mexico</span>

Industrial coal mining in Mexico first dates to the year 1884 at the Sabinas basin, in the northern border state of Coahuila. The vast majority of the nation's known reserves remain in this relatively small Región Carbonífera.

Mexico highly depends on the burning of its fossil fuels, and for the same reason, it is in its interest to look into mitigation solutions for its corresponding emissions. In the General Law on Climate Change on 2012, Mexico promised to reduce 20% of its greenhouse gas (GHG) emissions by 2020 and 50% by 2050, as well as in the Paris Agreement. 19% of this new mitigation plan will be dedicated to carbon capture and storage and specifically 10% to the energy industry.

Altos Hornos del Mediterráneo S.A. (AHM) was a Spanish ferrous metallurgy company incorporated in 1971 to operate the integral ferrous metallurgy in Sagunto, known as the 4th Integral Ferrous Metallurgy Plant of Spain. At the time of its creation, it inherited the historical facilities that Altos Hornos de Vizcaya had owned in Sagunto since the beginning of the 20th century. However, the company's activity was strongly affected by the industrial crisis that the country experienced in the 70's and 80's, so that in 1984 the public administration agreed to cease its operations.

References

  1. "Altos Hornos de Mexico SAB de CV". Financial Times. Retrieved 29 November 2016.
  2. "Detienen a dueño de Altos Hornos de México en España", Milenio, Mexico City, May 28, 2019, retrieved May 28, 2019
  3. "Interpol arrests steelmaker chief, warrant out for ex-Pemex boss", Mexico News Daily, Mexico City, May 28, 2019, retrieved May 28, 2019
  4. "Alonso Ancira impugna fallo para descongelar sus cuentas bancarias", Forbes, Mexico City, July 15, 2019, retrieved September 27, 2019
  5. "Alonso Ancira busca capital para AHMSA", El Sol de México, Mexico City, September 24, 2019, retrieved September 27, 2019
  6. "Mexican Executive to Pay $219m to Avoid Graft Trial". www.occrp.org. Retrieved 2023-09-09.
  7. "Otra contra Alonso Ancira: CFE compró carbón a sobreprecio a empresa de AHMSA en sexenio de Peña Nieto". infobae (in European Spanish). Retrieved 2023-09-09.
  8. "Lozoya Exempt From Agronitrogenados Case". Mexico Business. Retrieved 2023-09-09.
  9. "In bold anti-graft push, Mexico sets sights on ex-president's confidant". Reuters. 2019-05-28. Retrieved 2023-09-09.
  10. "PEMEX's debt: its absorption by the SHCP to convert it into sovereign debt and its fiscal implications – Acedo Santamarina" . Retrieved 2023-09-09.
  11. "Pemex gets $3.8 billion from Mexico government, considers tapping bond markets again". Reuters. 2023-07-28. Retrieved 2023-09-09.
  12. Malkin, Elisabeth (2004-07-14). "Fugitive Executive Arrested In Mexican Tax Fraud Case". The New York Times. ISSN   0362-4331 . Retrieved 2023-09-09.
  13. "Mexican authorities can't arrest Alonso Ancira in connection with the Agronitrogenados case". El Universal (in Spanish). Retrieved 2023-09-09.
  14. "Subsidiarias AHMSA". Company Website (in Spanish). Altos Hornos de Mexico. Archived from the original on 28 April 2014. Retrieved 23 April 2014.