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Steel Plating Mill (Mexico)

Volume 86: debated on Monday 11 November 1985

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asked the Prime Minister how much money Her Majesty's Government have approved for the construction of a steel plating mill at Sicartsa, Mexico; how much has been spent; when it is expected that the mill will be completed; and if she will make a statement.

In 1982 Her Majesty's Government made available to the Government of Mexico a £34·94 million grant under the aid and trade provision towards the cost of the United Kingdom content of a £320 million contract for the supply of a steel plate mill awarded to Davy McKee. In addition ECGD also supported loans of £198 million and DM 151 million. All but £5,000 of the grant has been disbursed to the United Kingdom company for plant and materials supplied. The loans have not yet been fully utilised.The Mexican Government informed Her Majesty's Government in June 1985 that the project had been suspended due to Mexico's economic difficulties, but that existing contracts with foreign suppliers would be honoured. It is not yet known what the Mexican Government's intentions are in the longer term for the completion of the project.