Ternium's Ambitious Move: Investing $3.2 Billion to Build a State-of-the-Art Steel Plant in Mexico

Luxembourg: Ternium S.A., one of the largest Latin American Steel companies, is constructing a cutting-edge Steel mill in Nuevo León, Mexico, with the aim of boosting local economies. The new Steel mill is designed to comply with all the regulations of the United States-Mexico-Canada Agreement, according to Ternium CEO Maximo Vedoya's statements during the announcement. The facility will be in Pesquera, in the Mexican state of Nuevo Leon.

During his address, Vedoya announced Ternium's historic investment plan of US$3.2bn, which will be exclusively allocated to the construction of the new Steel mill in Pesqueria, Nuevo León, Mexico. Although Texas was initially being considered as a potential site for the plant, Vedoya revealed that the company's board decided to build the facility within the USMCA area. Considering Ternium's existing investments in Nuevo Leon, Vedoya believes the internal discussions led to the favourable decision of building the mill in the state. The inauguration of the cutting-edge facility was attended by notable dignitaries such as César Jiménez, president of Ternium Mexico, Samuel Garcia, Governor of Nuevo Leon, and Iván Rivas, the State Economy Minister.

Ternium's new Steel mill is set to become the most advanced and eco-friendly Steelworks on the continent, thanks to its cutting-edge design. Safety remains a top priority, as the mill will operate with a fully automated system that allows operators to always work remotely. Additionally, the mill will use treated wastewater and incorporate carbon capture technology into its operations, making it an environmentally conscious enterprise. The incorporation of Tenova's carbon capture technology will be the fourth module in the entire operation, showcasing Ternium's commitment to protecting the planet while producing high-quality Steel products.

Ternium, formed by merging Mexican, Argentine, and Venezuelan firms in 2005, is set to expand its investment in its Steel production with a new state-of-the-art installation that will complement the recently operational hot rolling mill in Pesquería. This additional investment will bring Ternium's total investment amount to about US$6.8bn. The third stage of this megaproject began last year, aiming to integrate operations across the USMCA region with the latest technology while adhering to the company's 2030 decarbonization commitment.

During his address, the Governor of Nuevo León talked about nearshoring, a strategy that helps manufacturers benefit from Mexico's proximity to the United States and its competitive labor costs, specialized workforce, and local industry opportunities. In addition, the Governor announced the construction of an 18-kilometer highway that will connect Ternium's Pesquería site to the ring road in Juárez. The Steelworks are scheduled to open in the first half of 2026, with construction beginning in December. Ternium's investment worth $3.2 billion is set to create more than 1,800 employment opportunities, both directly and indirectly, in the USMCA region. The steel plant will have a capacity to produce 2.6 million tons of cast steel, further boosting the region's economy.