Ternium Mexico has began producing galvanized steel rolls at its new Ternium Industrial Center in Nuevo León, Mexico–which it built to become the country’s dominant player by supplanting imports.
The mill’s capacity is 356,000t per annum, which will largely supply the automotive, construction and white goods industries, the company said on its Twitter account.
Ternium invested $1.1bn in the Pesquería-based mill with intentions to steal market share from importers.
The company is the main steel supplier for Mexico’s automotive industry, offering an array of steel applications for auto parts, as well as light and heavy vehicles. However, the country’s automotive sector is in the throes of a challenging season.
Between January and November 2019, Mexico’s car production decreased 3.5pc to 3.54mn units. Exports over the same 11-month period also declined 2.2pc to 3.1mn units, according to figures from Amia, the country’s automotive association.
By the end of 2019, car production in the country is expected to decline 4pc to 3.75mn units. Exports are also anticipated to decreased 2.7pc to 3.35mn units because of lower export demand, according to media outlets.