ArcelorMittal México says that its mill in Lázaro Cárdenas was partially closed on 23 July following an indictment by local authorities for a series of irregularities, including not having an operating license and having debts in the payment of its contributions for the last six years. The steelmaker tells Kallanish that the city council also demanded a retroactive payment of MXN 130 million ($5.76 million), in addition to a monthly increase in tax.

According to a note issued by the city council, ArcelorMittal also did not have an Internal Civil Protection Program and therefore, puts at risk the safety of its workforce and the community in general. Operations at areas whose inactivity can lead to irreparable damage continue as normal.

ArcelorMittal, meanwhile, qualified the partial closure of its activities as abuse and contempt of federal law, as a judge from the District of the State of Michoacán granted the company a suspension of the closure on 11 July. Despite said order, “…public officials from the municipality of Lázaro Cárdenas, accompanied by the police, using force, entered our facilities without an act to carry out any closure”.

ArcelorMittal México confirms that it has complied with the payment of the corresponding taxes on a bimonthly basis and has paid some contributions in advance. “The necessary permits have been requested from the municipality and it has fulfilled with the conditions, processes and obligations every time installation and/or construction works have been carried out within the company's area”, the steelmaker explains.

ArcelorMittal reiterates that it will continue to fulfil the commitments that are within the framework of the law and to maintain itself as a source of employment for the more than 8,000 families of Lázaro Cárdenas, as well as for the more than 50,000 indirect jobs generated through its value chain.

The ArcelorMittal integrated mill in Lázaro Cárdenas has a long and flat steel production capacity of 2.4 million tonnes/year and 4m t/y, respectively.