The Hylsa Pelletizing Plant In Colima, Mexico

Grupo Acera, HYLSA originated in 1942 when Hojalata y Lamina began operations to supply steel strip for the Cuauhtémoc Brewery, the parent company. Production began in April, 1943 with growth accelerated because of World War II. By 1948 the company was producing its own steel from electric furnaces charged with scrap iron. Further expansion was hampered by the fluctuations in availability, price and quality of scrap iron. As a result, a search was made for a suitable process to enable HYLSA to satisfy its need for a reliable source of feed for its steel-making facilities. Their relatively low iron requirements at the time did not justify the very high capital investments required using the conventional blast furnace method. Processes which by-passed the blast furnaces were very much in their infancy and were not commercially tested. HYLSA then undertook an investigation of the direct reduction processes, knowing full well that much larger companies in other countries had investigated several processes but their work had not established a trend toward direct reduction or any particular process. However, after much effort and persistence HYLSA arrived at a process which suited their conditions. By using Mexican iron ore and natural gas they developed the now well-known H. y L. Process to produce sponge iron. Concurrent with the start of investigations which led to the H. y L. Process, HYLSA began an exploration program for a suitable source of iron ore. Thus in 1951, Cia. Minera Las Encinas, S.A. was formed, culminating in the development of the ore bodies near Pihuamo in the State of Jalisco. Mining commenced and ore was