Ternium Plans to Invest US$4.2 Billion in New Flat Steel Plant in Mexico
Ternium S.A. (NYSE: TX) today announced that it plans to invest a total of US$4.2 billion over the next five years to build a flat steel plant in Mexico aimed at expanding its production capacity.
The project’s initial phase involves the design and construction of a state-of-the-art flat-rolled mini mill in the Monterrey area, with a direct reduction unit, two electric arc furnaces, two ladle furnaces, a thin-slab-caster and a hot-strip mill, intended to produce two million tons per year of hot rolled coils. Ternium expects that this new facility will require a total investment of approximately US$2.7 billion and will be in full production within the next four years.
The second phase of the project involves the construction of a cold rolled and galvanizing plant, including a pickling line and a cold rolled tandem mill with annual capacity of one million tons of cold rolled coils and a hot-dipped galvanizing line with annual capacity of 300,000 tons, to serve the industrial and commercial markets. Ternium expects that this second phase, to be completed by 2013, will require an additional investment of approximately US$1.5 billion.
Ternium believes that demand for value-added flat steel products in Mexico will grow steadily in the medium term, driven by new construction and industrial development. With the additional capacity in Mexico, Ternium expects to support the anticipated demand growth in the region.
Some of the statements contained in this press release are “forward-looking statements.” Forward-looking statements are based on management’s current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products and other factors beyond Ternium’s control.
Ternium is one of the leading steel companies in Latin America, manufacturing and processing a wide range of flat and long steel products for customers active in the construction, home appliances, capital goods, container, food and automotive industries. With its principal operations in Mexico and Argentina, Ternium serves markets in the Americas through its integrated manufacturing system and extensive distribution network. The Company has annual sales of approximately US$10 billion and ships approximately 8 million tons of steel products each year. More information about Ternium is available at www.ternium.com.
Sebastián Martí Ternium - Investor Relations USA +1 (866) 890 0443 Mexico +52 (81) 8865 2111 Argentina +54 (11) 4018 2389 www.ternium.com
SOURCE: Ternium S.A.