• USMCA: One of Mexico’s few producers of steel, Ternium, said they will be ready to make investments for the auto industry to comply with the new rule of origin in the new US, Canada, and Mexico (USMCA), which requires 75% of the steel used in cars to be poured and melted in North America.
• OPTIONS: Based in Luxembourg, Ternium said they were exploring different options on how to increase the production of steel sheets. The company said they would explore a joint project with other investors or increase production at its location in the northern state of Nuevo León.
• MARKET: “We are open to any investment or purchase possibilities -which must be analyzed very carefully because the conditions are uncertain- but I can assure you that Ternium will be present in the (Mexican) automotive market”, said César Jiménez Flores, head of Ternium.
• ANALYSIS: Last month, a report by Grupo Monex said that both Ternium and Arcelor Mittal were the two out of three players in Mexico’s steel sector that were in a better position to adapt their facilities and guarantee that steel is “initially melted” in North America.
