The company announces investments for more than USD 1 billion for the construction of two new facilities: a hot rolling mill at the Pesquería Industrial Center and a steel bar production facility in Colombia.
Ternium announced on September 28 that it will build two new plants in Mexico and in Colombia through 2020 to further develop its industrial system and better serve its customers (Click here to read the company’s statement).
The decision by Ternium’s Board includes the construction of a new state-of-the-art hot rolling mill in the company’s industrial center in Pesquería, Nuevo León, México, for USD 1.1 billion. “A new high-end hot rolling mill in Mexico is a logical next step after the addition of our new facility in Brazil,” said Daniel Novegil, CEO of Ternium.
Ternium’s new hot rolling mill will have an annual production capacity of 3.7 million metric tons and will enable the expansion of the company’s product range and replace high value-added imports. It is scheduled to be operational by the second half of 2020. The company said in the statement that the mill will target Mexico’s growing industrial and commercial markets, improving customer service and reducing lead-times, as well as “a significant technological upgrade to the country’s steel production capacity.”
“This new equipment, once operational, will integrate upstream with Ternium’s high-end steelmaking capacity in Brazil and downstream with the company’s state-of-the-art Pesquería facility,” added Novegil.
The investment in Mexico adds up to the construction announced in March of a galvanizing line and pre-painting line for USD 260 million.
“The last few weeks have been difficult for the country, but we have seen the strength of the Mexican people,” said Máximo Vedoya, Ternium’s Area Manager in Mexico, in a video message to announce the new investment. “This announcement is part of our long-term vision and the trust we have in Mexico and its people.” Some 4,500 jobs will be created during the construction of the new mill, said Vedoya.
Capacity to more than triple in Colombia
The company also announced the construction of a new steel reinforcing bar and coil mill production facility in northern Colombia that will, in Novegil’s words, “enable us to expand our market share in the dynamic construction sector by offering an alternative to imports.” For an estimated investment of USD 90 million, the new plant will have an annual capacity of 520,000 metric tons and is to be completed by the second half of 2019.
“This investment increases our production capacity in Colombia by 260%,” said Miguel Homes, Ternium Area Manager in the Andean Region. “It will allow us to substitute imports and add more value locally.”