By Samuel Williams -
A new galvanized steel plant in Mexico's Nuevo León state is nearing full production, Luxembourg-based Ternium (NYSE: TX) CFO Pablo Brizzio said in a call to discuss the company's Q3 results.
The Tenigal plant, a 51:49 JV with Japan's Nippon Steel, which will produce galvanized steel products for Mexico's automotive industry, is "in the ramp-up period and we believe it will reach full capacity in the first half of next year," Brizzio told the call on Wednesday (Nov 6).
The hot-dip galvanizing plant was expected to have a capacity of 400,000t/y and require US$350mn investment, Ternium said at the launch of the JV in October 2010.
Ternium México is also continuing to ramp up its US$1.1bn cold rolling mill in Nuevo León state, Brizzio added.
The mill is expected to produce nearly 2Mt/y of specialty steel products primarily for the car industry, Ternium said in September.
A new slab casting mill at the company's Siderar flat steel subsidiary in Argentina is also scheduled to begin operations in 3Q14, Brizzio said, which will produce steel slab for the Argentine and Mexican markets.
CAPEX
Ternium is coming to the end of its current capex program, which is expected to run into 2014 as expansion continues in Argentina, Brizzio added.
While the company is continuing to review its future capex plans, spending for next year is expected to total about US$600mn, he said.
Demand for Ternium's products is "looking good" for the remainder of the year in Mexico and the US, the CFO added, with no change expected in Argentina, which saw "healthy levels" of orders in Q3.
Latin America-focused Ternium - a subsidiary of Italian-Argentine group Techint - also has operations in Colombia and Guatemala.
The Tenigal plant, a 51:49 JV with Japan's Nippon Steel, which will produce galvanized steel products for Mexico's automotive industry, is "in the ramp-up period and we believe it will reach full capacity in the first half of next year," Brizzio told the call on Wednesday (Nov 6).
The hot-dip galvanizing plant was expected to have a capacity of 400,000t/y and require US$350mn investment, Ternium said at the launch of the JV in October 2010.
Ternium México is also continuing to ramp up its US$1.1bn cold rolling mill in Nuevo León state, Brizzio added.
The mill is expected to produce nearly 2Mt/y of specialty steel products primarily for the car industry, Ternium said in September.
A new slab casting mill at the company's Siderar flat steel subsidiary in Argentina is also scheduled to begin operations in 3Q14, Brizzio said, which will produce steel slab for the Argentine and Mexican markets.
CAPEX
Ternium is coming to the end of its current capex program, which is expected to run into 2014 as expansion continues in Argentina, Brizzio added.
While the company is continuing to review its future capex plans, spending for next year is expected to total about US$600mn, he said.
Demand for Ternium's products is "looking good" for the remainder of the year in Mexico and the US, the CFO added, with no change expected in Argentina, which saw "healthy levels" of orders in Q3.
Latin America-focused Ternium - a subsidiary of Italian-Argentine group Techint - also has operations in Colombia and Guatemala.
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