Ternium announces US$ 260 million expansion in Nuevo Leon facility
Ternium S.A. announced plans to build a hot-dip galvanizing line and a pre-painting line in its facility in Pesquería, Mexico. The new lines will target Mexico’s industrial markets, deepening the company’s import substitution strategy.
Ternium’s new hot-dip galvanizing and pre-painting lines will have annual production capacity of 300,000 and 120,000 metric tons, respectively. With a total investment of approximately US$ 260 million, the new lines would be operational by 2020 and expand Ternium’s current hot-dip galvanizing and pre-painting production capacity in Mexico by 17% and 20%, respectively.
This new high-value-adding processing capacity will support Ternium’s leading position as a steel supplier to the growing household appliances, lightning and metal-mechanic industries in Mexico, and will broaden the company’s product range.
Mexican revenues on the rise
Steelmaking group Ternium saw its net revenues rise in Mexico, at the same time revenues at South America fell, according to its quarterly results.
Ternium’s net revenues in Mexico in fourth quarter rose 18.2%, year-on-year, to US$ 1.12 billion. On the other hand, revenues at its Southern Region (which includes businesses in Argentina, Paraguay, Brazil, Chile, Bolivia and Uruguay) declined 23.3%, year-on-year, in the same period to US$ 498.3 million.
As for the full year of 2016, Ternium’s revenues in Mexico totaled US$ 4.4 billion, up from US$ 4.3 billion in 2015. Net revenues at Ternium’s Southern Region segment in 2016 declined 27.3%, year-on-year, to US$ 1.8 billion, it said.
Steel shipments in Mexico in fourth quarter reached 1.5 million metric tons, up from 1.4 million in the same quarter of 2015. As for its Southern Region segment, steel shipments dropped 10.2% in fourth quarter, year-on-year, to 577,500 metric tons.