Public officials from the municipality of Lazaro Cardenas in Michoacan state, Mexico forcefully entered ArcelorMittal's plant yesterday, causing a partial shutdown in operations.
The city council accused the Luxembourg-headquartered steel producer of failing to comply with property tax updates for the last six years and demanded a retroactive payment of 130mn pesos ($5.7mn). The company also lacks the proper operating licence and the correct internal civil protection programme, said the municipality.
The city council "ordered the partial closure of the company, taking care at all times not to impact production in those areas whose closure would create irrevocable damage to third parties," it said. It remains unclear to what extent production will be affected, or when the plant will be released by authorities.
ArcelorMittal rejected the city's claims and stressed its compliance with all property tax, labour and permitting requirements. "On July 11 of this year, the 5th judge of the Michoacan district court granted ArcelorMittal a protection order against any act of closure by the city council."
Lazaro Cardenas has a crude steel production capacity of 6.4mn t/yr. It produces flat products, including slab, a large percentage of which are exported to the US, South America and Europe. It also produces wire rod and rebar.
