Breathe
By Sofia Pérez Gasque
Mexico has just lost its steel star. After complicated months, Altos Hornos de México (AHMSA) declared bankruptcy, and this is a major blow to the country's steel industry. With 80 years of history, this company was not only an economic pillar in Coahuila, but also employed thousands of families.
Now, about 20,000 families are in uncertainty.
Altos Hornos used to be the king of steel in Mexico, but its recent history has been full of scandals and financial problems. In 2019, things got ugly when its president, Alonso Ancira, was arrested in Spain for a corruption scandal related to the sale of a plant to Pemex. This plant was sold at an exorbitant price and marked the beginning of the company's decline.
Since then, AHMSA has had to stop operations several times and accumulate a huge debt that exceeds US$5 billion. Despite attempts to attract investors and reactivate its operations, it has not been able to move forward.
Official bankruptcy means that AHMSA will have to sell its assets to pay its debts, including what it owes to Pemex and the Federal Electricity Commission (CFE). This process could take months and leaves many workers without their back wages and without a clear idea about their future employment.
But it is not all bad news. There have been reports of at least seven companies interested in buying AHMSA's facilities. If any negotiations materialize, we could see a resurgence of operations and save some jobs.
The collapse of Altos Hornos raises serious questions about the future of steel production in Mexico. With the closure of the steel giant, the country could have trouble meeting its domestic demand for steel, which would affect sectors such as construction and other businesses.
This also impacts local communities that depend on the employment generated by AHMSA. In Coahuila, where the company had a strong labor presence, the uncertainty is affecting thousands of families who now face an economic crisis.
The bankruptcy of Altos Hornos is a stark reminder of the challenges facing Mexican industry due to problems such as corruption and corporate mismanagement. Although there is interest from other companies to revitalize the facilities, the road to recovery will be long and complicated.
Mexico has not only lost its steel star; it also needs to rethink how to strengthen its steel industry and ensure a sustainable future for workers and their families.
The history of Altos Hornos teaches us about the importance of transparent and responsible management in the industrial sector.
The opinions expressed are the responsibility of the authors and are absolutely independent of the position and editorial line of the company. Opinion 51.
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