Ternium's expansion at its plant in Pesqueria, Nuevo Leon, will target imported steel in Mexico, Maximo Vedoya, executive vice president of the company in Mexico, recently said in conference with analysts.
During the presentation of the Ternium Investor Day held at the facilities of the New York Stock Exchange, Vedoya stressed that the new production line will have an annual capacity of 4.1 million tons of hot rolled sheet, and that it will be ready by the end of 2020.
It seeks to deal with the 4 million tons of flat steel for the automotive industry, 2.3 million tons for other industrial uses and 1.7 million tons for the commercial sector that were imported by Mexico last year, Vedoya said.
The investment of US$ 1.1 billion will not only increase production capacity, but will also increase the width of their product from a current maximum of 1,300 to 1,900 millimeters, while the thickness will also rise from the current 15 to 25 millimeters in hot rolled sheet.
These modifications will allow offering higher value-added products to the automotive, household appliances, machinery, energy and construction sectors, while replacing current imports, Vedoya added.
The complex in Pesqueria will also have a new line of galvanized steel by immersion and another one of painted steel with the highest technology available in Mexico in which an additional US$280 million will be invested.
The annual production capacity of galvanized steels will be 350,000 tons and will start operations in May 2019, while the painted steels capacity is 120,000 tons and is expected to start next March.