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Ternium S.A. is a manufacturer of flat and long steel products with production centers in Argentina, Brazil, Mexico, Guatemala, Colombia, and the United States. Ternium owns a 51.5% interest in Usiminas of Brazil. The company has an annual production capacity of 15.4 million tons.[1] In 2023, 55% of its sales were from Mexico; 21% of sales were from Argentina; Bolivia, Chile, Paraguay and Uruguay; 13% of sales were from Brazil; and 11% of sales were from the United States, Colombia and Central America.[1]

Key Information

Approximately 21% of the company is publicly traded; the remainder is controlled by San Faustin S.A., which is in turn controlled by Rocca & Partners Stichting Administratiekantoor Aandelen San Faustin, a Stichting.[1]

The company takes its name from the Latin words Ter (three) and Eternium (eternal) in reference to the integration of the three steel mills.

History

[edit]

Ternium was formed in 2005 by the consolidation of three companies: Siderar of Argentina, Sidor of Venezuela and Hylsa (es) of Mexico.

In 2006, Ternium was listed on the New York Stock Exchange.[1]

In 2007, Ternium acquired Grupo IMSA, expanding its operations into Guatemala and the United States.[1][2]

In April 2008, after a series of worker disputes over pay which led to strike actions, Sidor was nationalized by the government of Venezuela.[3][4] In May 2009, compensation of US$1.65 billion was paid for Ternium's 59.7% stake in Sidor.[5]

In August 2010, Ternium acquired a 54% interest in Ferrasa, and in April 2015, Ternium acquired the remainder of the company, which was renamed Ternium Colombia.[1][6]

In 2017, Ternium acquired CSA Siderúrgica do Atlântico for €1.4 billion and renamed it Ternium Brazil.[7]

In July 2023, Ternium increased its ownership in Usiminas to 51.5%.[8]

References

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Ternium

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Ternium S.A. is a Luxembourg-domiciled multinational corporation that manufactures and processes flat and long steel products, operating as a leading producer in the Americas with integrated facilities from iron ore mining to finished goods.
The company maintains 18 production centers across Mexico, Argentina, Brazil, Colombia, Guatemala, and the United States, achieving an annual output exceeding 14.2 million tons of finished steel products tailored for sectors including construction, automotive, appliances, and general manufacturing.
Listed on the New York Stock Exchange under the ticker TX, Ternium emphasizes technological innovation and sustainability initiatives, such as targeting a 20% reduction in CO₂ emissions by 2030 through investments in efficient processes and renewable energy integration.

Overview

Corporate Profile and Operations

Ternium is a leading steel producer in the Americas, manufacturing and processing a wide range of flat and long steel products for manufacturing industries, including automotive and appliances, as well as the construction sector. The company operates a fully integrated industrial system that spans from iron ore mining to the production of high-value added steel products, emphasizing efficient processes and advanced technology to serve demanding markets. Ternium's operational scale includes over 10 million tons of annual crude steel production capacity, supported by 18 production plants and two mining facilities primarily in Mexico. Its facilities employ electric arc furnaces alongside other steelmaking technologies for integrated production, enabling the output of over 14.2 million tons of finished steel products annually. The company maintains 52 service and distribution centers to facilitate delivery across its operational regions. Primary operations are concentrated in Argentina, Mexico, Brazil, Colombia, and Guatemala, with additional presence in the United States, allowing Ternium to supply domestic markets in Latin America while exporting to the U.S. and other international destinations. This geographic footprint supports specialization in advanced steel products tailored for infrastructure, housing, and industrial applications, with ongoing innovation yielding approximately 140 new products developed each year.

Ownership and Relation to Techint Group

Ternium S.A. functions as a publicly traded holding company listed on the New York Stock Exchange under the ticker symbol TX since its initial public offering in February 2006, though its operational roots trace to steel assets consolidated by the Techint Group in the early 2000s. The company is majority controlled by San Faustin S.A., a Luxembourg-based entity serving as its primary shareholder and part of the broader Techint Group structure, which also includes indirect holdings through subsidiaries like Tenaris S.A. (approximately 11.46% stake as of December 31, 2024). This control is exercised via a combination of direct equity ownership and voting rights concentrated within Techint-affiliated vehicles, enabling strategic alignment without full consolidation into the group's non-steel operations. The Techint Group's oversight, originating from its founder's steel engineering ventures in the 1940s, provides Ternium with access to specialized resources including engineering, construction, and procurement services from affiliated entities such as Techint E&C. These synergies facilitate technology transfer in steelmaking processes and shared supply chain efficiencies, as evidenced by ongoing contracts for civil, electromechanical, and specialized labor support. However, Ternium maintains independent management focused on Latin American markets, with its board chaired by Paolo Rocca, a Techint Group leader and grandson of founder Agostino Rocca, to balance group-level expertise with regional autonomy. Related-party transactions with Techint entities, such as sales, purchases, and service agreements, are routine but subject to scrutiny in U.S. Securities and Exchange Commission filings to mitigate potential conflicts of interest. These disclosures highlight arms-length pricing efforts, though the affiliated structure inherently ties Ternium's strategic decisions to broader group priorities in global industrial operations. This positioning strengthens Ternium's competitive edge in flat steel production while exposing it to group-wide risks, including diversified exposure across energy and engineering sectors.

History

Origins and Early Expansion (Pre-2005)

Ternium's origins lie in the Techint Group's expansion into Argentina's steel industry during the mid-20th century. The Techint Group, founded in 1945 by Italian industrialist Agostino Rocca, initially focused on engineering and construction before entering steel production. In September 1961, Techint established Propulsora Siderúrgica S.A. (Propulsora), which commenced operations as a cold-rolled steel manufacturer and constructed its initial facility in Ensenada in 1968. This marked Techint's initial foray into flat steel products in Argentina, complementing its earlier seamless tube manufacturing through Siderca, built in Campana in 1954. The 1990s brought significant consolidation amid Argentina's privatization wave. In 1992, Techint acquired the state-owned Sociedad Mixta Siderúrgica Argentina (Somisa), a major integrated steel producer, integrating it with Propulsora's operations. By 1993, Propulsora merged with Aceros Paraná S.A.—a entity formed from former Somisa assets—and Aceros Revestidos S.A., a coated steel producer, to create Siderar S.A.I.C. This merger transformed the combined entity into a fully integrated steelmaker with enhanced production capabilities in slabs, hot-rolled coils, and downstream products, positioning Siderar as Techint's flagship flat steel operation in Argentina. Early international groundwork complemented domestic growth, particularly in tubular products. Techint had constructed the Tamsa seamless tube plant in Veracruz, Mexico, in 1954 and acquired controlling interest through Siderca in 1993, establishing a regional presence. These steps laid the foundation for broader Latin American steel dominance. In preparation for expansion and capital market access, Techint incorporated Ternium S.A. as a Luxembourg holding company in April 2005, initially consolidating Siderar and other assets to streamline operations ahead of an initial public offering. This structure enabled the subsequent integration of additional holdings, focusing on efficient cross-border management without immediate post-formation acquisitions.

Key Acquisitions and Growth (2005–2015)

Ternium completed its initial public offering in February 2006, listing American Depositary Shares on the New York Stock Exchange and shares on the Buenos Aires Stock Exchange, raising net proceeds of approximately $528 million to fund expansion and acquisitions. This capital infusion supported aggressive consolidation in Latin America's steel sector, enabling Ternium to pursue strategic targets that enhanced its flat steel production and regional market position. In May 2007, Ternium announced the acquisition of control over Mexico's Grupo IMSA for $1.7 billion, with the deal closing in the third quarter after regulatory approvals, integrating IMSA's steel operations including Hylsa Mexicana and expanding Ternium's footprint into flat products in Mexico, Guatemala, and the United States. This transaction, financed through a combination of debt and equity, more than doubled Ternium's production capacity in the region and strengthened its supply chain integration, though Ternium later divested non-core assets acquired from IMSA to focus on high-value steel segments. Ternium further extended its operations into Colombia in April 2010 by acquiring a 54% stake in Ferrasa for $74.5 million, securing a controlling interest in a key distributor and processor of steel products, which bolstered commercial presence and downstream capabilities in the Andean market. Concurrently, the company pursued internal growth through facility investments, including enhancements to slab and flat steel production in Argentina, amid rising regional demand. The 2008 global financial crisis posed challenges, prompting Ternium to implement production cuts and cost-control measures to preserve liquidity and competitiveness, while prioritizing market share retention in core Latin American markets through operational efficiencies rather than further aggressive expansion. These strategies enabled Ternium to emerge with a more resilient cost structure, positioning it for post-crisis recovery and sustained growth in flat steel output by 2015.

Modern Developments and Challenges (2016–Present)

In July 2023, Ternium completed the acquisition of an additional stake in the control group of Usiminas, Brazil's second-largest flat steel producer, for approximately $118.7 million, increasing its ownership to 51.5% and consolidating its influence over Usiminas' operations. This move strengthened Ternium's footprint in South America, enabling better coordination of production capacity amid regional demand fluctuations and raw material sourcing from Usiminas' iron ore assets. Facing U.S. tariffs on steel imports, including a 25% levy reinstated in 2025 under the Trump administration, Ternium has diversified export markets and enhanced operational efficiencies to mitigate impacts on its Mexican shipments, which previously benefited from USMCA exemptions. Company executives noted that while Mexico's steel trade deficit with the U.S. widened to nearly 2.3 million tons by late 2024, nearshoring trends could offset some losses by attracting U.S. firms to relocate production within USMCA-compliant zones. In response, Ternium invested in a new push-pull pickling line at its Pesquería complex in Mexico, with 550,000 tons per year capacity starting operations in the fourth quarter of 2024, alongside finishing lines to boost value-added products for automotive and appliance sectors. Concurrently, in Argentina, Ternium launched its first wind farm in 2024, a 99 MW facility costing about $225 million, projected to supply 90% of the company's purchased electricity needs there and reduce reliance on volatile energy markets. The COVID-19 pandemic disrupted Ternium's supply chains in 2020, but the company adapted by prioritizing essential operations and securing alternative sourcing, leading to a rebound with steel shipments rising 19% to 14.2 million tons in subsequent recovery years through 2024. Adjusted EBITDA grew amid this period, supported by higher volumes and pricing despite raw material volatility, with full-year 2024 capital expenditures reaching $1.9 billion focused on resilient infrastructure like electric arc furnaces and direct reduced iron facilities. These efforts underscored Ternium's emphasis on supply chain robustness, though ongoing challenges include geopolitical risks affecting equipment suppliers and fluctuating global demand in sectors like construction.

Business Operations

Production Facilities and Capacity

Ternium maintains primary steel production facilities in Argentina and Mexico, with additional operations in Brazil and service centers in Colombia and Guatemala. In Argentina, the San Nicolás mill serves as a core site for slab and flat-rolled steel production, utilizing integrated processes including melting and rolling. Mexico hosts the company's largest expansion through the Pesquería Industrial Center in Nuevo León, which includes multiple processing plants integrated following the 2008 acquisition of IMSA, encompassing sites like Apodaca for further downstream operations. In Brazil, facilities such as the Santa Cruz plant focus on long steel products, with production resumed in recent years to support regional output. These sites, along with minor operations in the United States, form the backbone of Ternium's manufacturing footprint across nine countries. The company's production technologies emphasize electric arc furnaces (EAFs) powered by scrap metal and direct reduced iron (DRI), enabling efficient recycling and reduced reliance on traditional blast furnaces. In Mexico, DRI-EAF routes have been employed since 1957, with the new Pesquería mill incorporating advanced EAFs, ladle furnaces, and direct reduction plants for slab output. Argentina's facilities similarly leverage EAFs for scrap-based melting, complemented by continuous casting and rolling lines for high-value flat products. Recent investments, including a $2.2 billion commitment over three years ending around 2025, target EAF and DRI enhancements to lower emissions and boost integration. Coating and galvanizing lines at select sites produce corrosion-resistant products through hot-dip and electrolytic processes. As of 2024, Ternium's total annual crude steel production capacity exceeds 15 million metric tons, reflecting expansions like the 2.6 million-ton EAF slab mill at Pesquería, which began operations in phases starting late 2024. This marks an increase from the 12.4 million tons achieved post-2007 acquisitions, driven by downstream finishing lines and slab capacity upgrades. Co-products such as slag and dust are recycled at rates approaching industry-leading levels through internal processes and partnerships, supporting circular steelmaking.

Products, Markets, and Supply Chain

Ternium produces a broad portfolio of flat steel products, including slabs, hot-rolled coils available in black or pickled finishes with various grades meeting international standards, cold-rolled coils, and galvanized steels. Coated variants encompass prepainted steels, galvanized-plus-aluminum coatings, and other specialized finishes supplied in coil, sheet, or die-cut forms for applications in automotive manufacturing, household appliances, and construction. The company also manufactures long products such as steel rods and wires, alongside tubular and roll-formed items, billets, and bars, supporting sectors like infrastructure and agroindustry. Ternium's sales are concentrated in Latin America, with major markets in Mexico—where it has expanded capacity to serve growing demand—Brazil via its stake in Usiminas, and the Southern Region encompassing Argentina, Paraguay, Chile, Bolivia, and Uruguay. Exports to the United States occur under frameworks like the USMCA, though volumes fluctuate with regional economic conditions and trade dynamics. The company's shipments remain exposed to steel price volatility driven by global cycles and competitive pressures from low-cost Asian imports, particularly affecting flat steel segments. Ternium's supply chain depends on key inputs including iron ore, metallurgical coal, steel scrap, and energy sources to feed its steelmaking processes, which blend blast furnace and increasingly electric arc furnace routes. Vertical integration through Techint Group enables sourcing of iron ore from owned mines in Brazil's Serra Azul region, processing pellet feed and sinter feed to reduce external dependency, while scrap—sourced domestically and industrially—is prioritized in electric arc furnaces to lower emissions and costs. Despite these measures, operations face risks from global raw material price swings, such as declines in iron ore benchmarks, and energy supply variability in host countries.

Financial Performance

Revenue, Profitability, and Key Metrics

Ternium's revenue grew from approximately $4.5 billion in 2005, shortly after its initial public offering, to $14.35 billion in 2022, driven by acquisitions expanding production capacity in Latin America and elevated steel prices during post-pandemic recovery. In 2023, net sales reached $17.6 billion, reflecting higher shipment volumes and a favorable product mix in core markets like Mexico and Argentina. Full-year 2024 revenue stood at $17.65 billion, though trailing twelve-month figures as of mid-2025 showed a decline amid global trade disruptions, including steel oversupply from Asia and regional economic volatility. Profitability has fluctuated with steel cycles, with adjusted EBITDA margins typically spanning 15-25% during expansions, as seen in 2022 when EBITDA hit around $3 billion on strong pricing power in protected regional markets. Margins compressed to 12% in 2024, yielding $2.0 billion in EBITDA, pressured by surging energy and raw material costs alongside Argentine currency devaluation effects. Net income for 2023 was $986 million on an adjusted basis, while 2024 reported $174 million, reduced by a one-time provision tied to a Brazilian legal ruling; however, Q2 2024 marked a recovery with $259 million in net income, bolstered by cost controls and operational efficiencies. Primary profit drivers include shipment volume growth from integrated facilities, averaging annual increases of 5-10% in expansion phases via acquisitions like CSA in Brazil, coupled with regional pricing advantages from import barriers; these are counterbalanced by high fixed costs in energy-intensive operations and exposure to hyperinflationary environments in Argentina, which eroded 10-15% of earnings in volatile years. Key metrics underscore a conservative capital structure, with debt-to-EBITDA ratios maintained below 1.2 in recent years, supporting investment-grade ratings from agencies like S&P. Return on equity peaked above 40% in high-margin periods but averaged 6-7% in 2023-2024 amid subdued demand, reflecting efficient asset utilization in core steelmaking. Ternium has consistently paid dividends, distributing $1.80 per share trailing annually as of mid-2025, yielding approximately 5% and signaling shareholder focus despite cyclical pressures.

Market Position and Investor Relations

Ternium S.A. trades on the New York Stock Exchange under the ticker symbol TX as American Depositary Receipts, representing shares of the Luxembourg-based holding company that consolidates its Latin American steel operations. As of October 2025, its market capitalization stands at approximately $7 billion, subject to fluctuations driven by global steel price cycles, regional economic volatility, and commodity inputs like iron ore and scrap metal. Despite these pressures, Ternium demonstrates resilience through its integrated production model, which spans mining to finished steel products, enabling cost efficiencies that buffer downturns compared to less vertically integrated peers. In the competitive landscape of Latin American steel production, Ternium holds a leading position as the region's top producer of flat steel products, with annual capacity exceeding 14 million tons and dominant market shares in key markets like Mexico and Argentina. This edge stems from advanced electric arc furnace technology, which yields lower production costs and emissions relative to traditional blast-furnace methods employed by rivals such as Gerdau S.A. and Usiminas S.A., positioning Ternium favorably amid rising environmental regulations and energy costs. Its strategic stake in Usiminas further bolsters regional footprint in Brazil, though integration challenges have been noted as potential risks to realizing synergies. Backed by the diversified Techint Group, Ternium maintains financial flexibility, allowing it to weather trade disruptions like U.S. Section 232 tariffs on steel imports, which have historically impacted exports to North America. Ternium's investor relations emphasize transparency through quarterly earnings releases, SEC filings including Form 20-F annual reports, and sustainability disclosures that detail environmental performance and governance practices. These materials routinely highlight disclosed risks such as currency devaluations in operating countries like Argentina and Mexico, geopolitical trade barriers, and operational dependencies on volatile raw material prices. The company engages shareholders via annual general meetings and analyst days, providing updates on strategic initiatives like capacity expansions and emission reductions to support long-term value creation amid cyclical industry dynamics.

Sustainability Efforts

Environmental Initiatives and Investments

Ternium established a decarbonization roadmap in 2021 targeting a 20% reduction in CO2 emissions intensity by 2030 relative to a 2018 baseline, supported by investments in energy efficiency and low-carbon technologies. In September 2024, the company updated this commitment to a 15% reduction by 2030 from a 2023 baseline, reflecting expanded production capacity and a focus on Scope 1 and 2 emissions, aiming for approximately 1.8 tons of CO2 equivalent per ton of hot-rolled steel. These goals are pursued through capital expenditures on process optimizations, such as electric arc furnace upgrades and scrap recycling enhancements, which have historically positioned Ternium's emissions below or aligned with global steel industry benchmarks. Between 2017 and 2021, Ternium allocated over $292 million to environmental projects, including cogeneration plants and emission control systems, contributing to incremental CO2 reductions. A key initiative in this vein is the 99 MW wind farm in Argentina, completed in 2024 with operations commencing by year-end, designed to offset up to 90% of the company's purchased electricity needs in the country and thereby lower indirect (Scope 2) emissions. This project exemplifies Ternium's shift toward renewable energy integration, supplementing earlier efforts like biomass use in certain facilities. In 2024, Ternium invested $120 million in targeted environmental measures, encompassing advanced emission monitoring systems, biodiversity conservation programs around operational sites, and resource recovery technologies. These expenditures align with ongoing efficiency drives, where the company's 2023 CO2 emissions intensity reached 1.94 tons per ton of steel produced, comparable to the world steel association's reported global average of 1.91 tons per ton of crude steel for that year. Complementary actions include water stewardship practices, such as closed-loop recycling systems that minimize freshwater withdrawals in water-stressed regions.

Social and Governance Practices

Ternium supports community development through targeted educational programs in its primary operating regions of Argentina, Mexico, and Brazil. Key initiatives include the Roberto Rocca Technical Schools, which provide high-quality technical secondary education, and the Technical Gene Program, aimed at strengthening technical skills among students and teachers via training, professional practices, site visits, and infrastructure enhancements. Additional efforts encompass the ExtraClase program for extracurricular support and scholarships with school infrastructure improvements, contributing to broader access to education. Over the five years preceding 2023, Ternium invested more than $33 million in such community programs, extending to arts, culture, social integration, and sports. The company's labor practices emphasize workforce safety and development, with extensive training programs delivered to employees and contractors. In 2022, Ternium provided 314,925 hours of safety training, focusing on risk awareness, preventive behaviors, and operational health systems, resulting in reported low total recordable incident rates (TRIR). Ternium's Human Rights Policy and updated Code of Conduct (2023) promote respectful workplaces compliant with international labor conventions, while supplier codes require adherence to human rights principles throughout the steel supply chain, enforced through regular compliance audits and training. In corporate governance, Ternium upholds anti-corruption measures via its Policy on Business Conduct, mandating training to mitigate bribery risks and aligning with laws such as the U.S. Foreign Corrupt Practices Act. As a NYSE-listed entity controlled by the Techint Group, the company discloses board composition, including independent directors, and maintains internal controls for ethical supplier management and transparency in related-party transactions. These practices are integrated into annual sustainability reporting under frameworks like GRI and SASB, emphasizing corporate culture and accountability.

Environmental Impact and Controversies

Pollution Incidents and Health Concerns

In May 2024, residents near Ternium Brasil's steel plant in Santa Cruz, Rio de Janeiro, reported a "silvery rain" phenomenon, where thick soot particles coated streets, homes, vehicles, and outdoor surfaces, attributed to emissions from the facility's operations. This event involved fine particulate matter and other airborne pollutants, including particulate matter (PM) and sulfur dioxide (SO2), which are known to irritate respiratory systems and exacerbate conditions like asthma upon inhalation. A 2024 health impact assessment by the Centre for Research in Environmental Epidemiology (CREA) modeled emissions from the Santa Cruz plant, estimating that its pollutants contribute to approximately 1,200 premature deaths annually from causes including stroke, ischemic heart disease, and lower respiratory infections across the affected region, extending toward São Paulo. The analysis linked plant emissions to around 100 emergency room visits for asthma exacerbations, 300 new chronic obstructive pulmonary disease (COPD) cases, and elevated risks for vulnerable groups such as children and the elderly, based on dispersion modeling of PM2.5, nitrogen oxides, and other toxics exceeding safe thresholds beyond plant boundaries. Local reports document over 300 lawsuits filed by Santa Cruz residents alleging health damages, including respiratory illnesses and skin irritations, directly tied to chronic exposure from plant emissions that violate air quality standards in surrounding low-income communities. These incidents parallel earlier air quality exceedances at the site, where pollutant plumes have historically drifted into densely populated areas, increasing exposure risks for populations with limited access to healthcare. Empirical emission inventories from the facility indicate annual releases of thousands of tons of PM and SO2, correlating with observed spikes in local hospital admissions for pollution-related conditions.

Regulatory Compliance and Responses

In Brazil, Ternium's Santa Cruz do Sul plant has faced regulatory scrutiny over air emissions, including a 2024 incident involving "silvery rain" of soot-like particles affecting nearby communities, prompting investigations by local environmental authorities and over 300 resident lawsuits alleging health impacts from pollutants. The company responded by installing new particulate monitors at community-adjacent stations and investing in operational upgrades, such as a 2022 blast furnace refurbishment costing approximately 1.3 billion reais (about $270 million) to enhance efficiency and reduce emissions. In disputing a 2025 CREA report on cross-state emissions, Ternium emphasized real-time monitoring data and geographic implausibility of the claims, arguing that state-of-the-art emission controls prevent such dispersion. In Mexico, the Federal Attorney for Environmental Protection (Profepa) temporarily closed Ternium's Xoxtla plant in January 2025 for alleged improper wastewater discharge into the Atoyac River, violating SEMARNAT standards on pollutant limits. Ternium contested the order, asserting through technical analysis that the discharge met regulatory parameters for non-hazardous reuse and did not constitute pollution, while committing to enhanced wastewater treatment processes compliant with SEMARNAT-2010 norms. Earlier, a 2023 community blockade at a Ternium mine highlighted tensions over water use, resolved through negotiations but underscoring ongoing regulatory demands for verifiable impact mitigation. Across Argentina and its other operations, Ternium maintains an Environmental Compliance Program involving regular internal audits and certifications, such as ISO 50001 for energy efficiency in Brazil, with 2024 reports indicating adherence to national legislation on emissions and waste without major fines but requiring continuous monitoring for potential legislative shifts. Post-incident responses include plant-specific modernizations, like increased scrap metal utilization in Brazil (targeting higher recycled input to lower emissions), which have enabled operational resumption and positioned Ternium's CO2 intensity at approximately 1.68-1.73 tons per ton of crude steel—below the global steel industry average of 1.9 tons. These measures demonstrate proactive adaptation to regulatory pressures, though effectiveness is evidenced by reduced incident recurrence in audited facilities rather than complete elimination of disputes, reflecting the inherent challenges of high-emission industries under evolving standards.

Economic Contributions

Job Creation and Regional Impact

Ternium employs 33,949 people directly across its operations in Latin America as of December 31, 2024, spanning production facilities in countries including Argentina, Mexico, and Brazil. In Argentina, Ternium Argentina maintains 5,100 direct jobs, contributing stable manufacturing employment amid the country's economic volatility marked by recurrent currency crises and inflation. These positions support families and local communities in industrial hubs like San Nicolás and Bahía Blanca, where steel production serves as an anchor for economic activity. Ternium's steel manufacturing generates indirect employment through extensive supply chains, including raw material suppliers, logistics, and downstream fabrication. In comparable operations, such as in Colombia, Ternium supports roughly 1.4 indirect jobs per direct position via value chain partners. Regionally, the broader steel sector in Mexico has created 672,000 direct and indirect jobs over the past decade, illustrating the multiplier effects of integrated production that Ternium exemplifies by supplying coils and slabs for construction and automotive uses. Ternium's output enables infrastructure development, providing essential materials for housing, bridges, and industrial facilities that drive regional GDP growth in export-dependent economies. In Argentina, annual net sales reached ARS 2,000 billion in 2024, underscoring the scale of economic contributions from flat steel production capacity exceeding several million tons. This downstream demand stimulates allied sectors like machinery and transportation, fostering industrial clusters that enhance productivity in areas prone to macroeconomic instability. To sustain long-term employability, Ternium invests in skill-building initiatives, including the Roberto Rocca Technical School, which trains teachers, provides professional practices, and upgrades infrastructure for technical education in steel-related fields. Partnerships like the FAME program develop manufacturing competencies for students, preparing a workforce for advanced processes and reducing structural unemployment in Latin America's industrial base. These efforts yield skilled labor that multiplies economic value beyond direct operations, supporting sustained regional development.

Role in Infrastructure and Industry

Ternium provides advanced high-strength steels (AHSS) to the automotive sector, supporting the production of lighter, more fuel-efficient vehicles through materials that enhance crash resistance and formability while complying with industry standards like IATF 16949. These steels, including high-strength low-alloy variants, enable weight reductions of up to 25-39% in vehicle components, contributing to lower greenhouse gas emissions over a car's lifecycle. In Mexico and Brazil, Ternium serves as a key supplier to regional automakers, fostering integrated supply chains under frameworks like the USMCA. For construction and infrastructure, Ternium's galvanized steel sheets offer superior corrosion resistance via zinc coating, extending product lifespan up to six times compared to standard galvanizing and suiting applications in roofing, structural profiles, and seismic-prone regions. These products' heat reflection and durability reduce maintenance needs in industrial buildings, silos, and civil projects across Latin America. By prioritizing local production, Ternium minimizes import reliance in the Americas, where it holds a leading position as an integrated steelmaker from mining to finished goods. Ternium's strategic expansions, such as its Pesquería mill in Mexico, align with nearshoring dynamics spurred by U.S.-China trade restrictions, enabling efficient supply of automotive and construction steel to North American markets while countering distortions from state-subsidized Asian overcapacity. This positioning supports regional industrialization by providing competitive, regionally sourced inputs that avoid trans-Pacific logistics vulnerabilities.

References

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