Ternium S.A. today announced plans to invest US$ 1.1 billion to install a new hot rolling mill at its Pesquería industrial center in Nuevo Leon, Northern Mexico. The new state-of-the-art hot rolling mill in Mexico will target the growing industrial and commercial markets, improving customer service and reducing lead-times.
The investment will constitute a significant technological upgrade to the country’s steel production capacity, enabling the expansion of Ternium’s product range to encompass a broader dimensional offering and the most advanced steel grades, with the aim at replacing high-value-added steel imports.
Ternium’s new hot rolling mill will have an annual production capacity of 3.7 million metric tons. With a total investment of US$ 1.1 billion, the new line would be operational by the second half of 2020. The current plan includes the option to increase in the future the line’s production capacity by an additional 1.1 million metric tons with a small additional investment.
“A new high-end hot rolling mill in Mexico is a logical next step after the addition of our new facility in Brazil, formerly known as CSA, to Ternium’s industrial system,” said Daniel Novegil, CEO of Ternium.
This new equipment, once operational, will integrate upstream with Ternium’s high-end steelmaking capacity in Brazil and downstream with the company’s state-of-the-art Pesquería facility.
“This will allow us to produce in Mexico technologically advanced products for the demanding and innovative automotive industry, as well as for a wide range of other industries like the home appliance, machinery, energy and construction sectors,” Novegil added.