Ternium: $1 Billion Expansion in the Works for Pesquería

“We think we have a very solid operation in Brazil, in Mexico and Argentina, and there’s a lot of opportunity to grow,” said Vedoya. “We are in the final stage of launching a new expansion initiative to complement all these capabilities we have in the Pesqueria facility.”

The expansion would include a new 1.5-million-ton pickling line and tandem cold mill, a 500,000-ton galvanizing line and finishing equipment for those products, the executive said.

The project would increase the steelmaker’s value-added products to complement its new 4.5-million-ton-per-year hot rolling mill. The company expects these value-added products to find buyers throughout North America, pointing to apparent steel consumption gains of 20% or more in the U.S. and Mexico in 2021 versus the prior year.

“We are seeing a lot of opportunities in North America,” said Vedoya, adding that the move would help the steelmaker support a Mexican market that saw 9 million tons of imports in 2021, and ensure they are compliant with the melted and poured requirements of the automotive industry.

The latest expansion news follows the $98 million the company is investing to add a second paint line to its Shreveport, La., facility. The new paint line, with capacity of 120,000 tons per year, should begin construction this quarter, with commercial production slated for mid-2024.

The ramp-up in production at Pesquería’s hot rolling mill is on schedule and should reach capacity with a minimum utilization of 80% by Q3 2022, pushing mill production up by roughly 1.8 million tons this year, the executive said.

Ternium’s primary operations are in Latin America. But it also operates the Ternium USA mill in Shreveport, which specializes in coated products, such as galvanized and Galvalume, heavily used in metal building construction.

By David Schollaert, David@SteelMarketUpdate.com