Ternium Plans to Invest US$4.2 Billion in New Flat Steel Plant in Mexico

Ternium Plans to Invest US$4.2 Billion in New Flat Steel Plant in Mexico

Ternium S.A. 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.

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.

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