TX - Ternium plans to start construction this year on new steel slab mill in Mexico

2023-06-20 18:54:58 ET

Ternium ( NYSE: TX ) said Tuesday it will build its new $2.2B electric arc furnace steel slab mill at the site of its new hot rolling mill in Pesquería in northern Mexico.

The steelmaker said the 2.6M metric tons/year facility will complement the existing 4.4M tons/year hot rolling mill as well as its downstream project at the same site, which is currently under construction.

"The value chain in Mexico is rapidly addressing and responding to the growth opportunities presented by the nearshoring of manufacturing capacity," CEO Maximo Vedoya said.

Ternium ( TX ) first announced the project in February , saying it wanted to create more steel supply in Mexico to meet requirements in the U.S.-Mexico-Canada Agreement that will be implemented in 2027.

The company said it expects to begin construction before the end of this year, with the start of operations anticipated in H1 2026.

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