Ternium Mexico’s hot-rolling mill in Pesqueria will begin operating in late in October—two months ahead of schedule—to meet growing demand.
The $1.1bn plant will produce specialized steel products and take market share away from imports, Maximo Vedoya, Ternium’s chief executive officer, told analysts. Its 3.7mn mt annual production capacity will be enough to meet demand from the automotive, household appliances, machinery, energy, and construction industries.
The facility includes an option to increase future production capacity by an additional 1.1mn mt, which would require a relatively small additional investment.
The Pesquería facility, which is located in the northern state of Nuevo León, will reach full capacity by either September or October of 2021, Vedoya said.
Last year, Ternium’s steel shipments decreased by 3pc to 12.5mn mt compared to the prior year. Of this amount, 6.3mn mt comprises all Mexican steel shipments, which fell by 3.6pc last year (240,000mt less) compared the prior year, according to the company.