Exclusive interview: Máximo Vedoya, CEO at Ternium México

Friday, 28 October 2016 22:55:11 (GMT+3)   |   Sao Paulo
       

Ternium Mexico expects a November start-up for its Techgen JV in Mexico, a top executive told SteelOrbis in the sidelines of the Alacero conference, held in Rio, Brazil, from October 25-26.
 
“The Techgen JV in Mexico is starting production. We did all tests and it will start producing by November 1,” Maximo Vedoya, CEO at Ternium Mexico told SteelOrbis in an exclusive interview.
 
“Actually, the [combined cycle power plant in Pesquería, Nuevo León] plant is already producing, but commercially speaking, we anticipate a November start-up,” he said, adding the unit was in tests for a period of five months.
 
The 900 megawatts project will supply energy to the manufacturing plants of Tenaris Tamsa and Ternium in Mexico. Earlier this year, Ternium expected an October start-up for the JV plant it owns with Tecpetrol.
 
Commenting on Mexico’s 15 percent provisional duties on a number of steel products, Vedoya said Canacero is fighting to include other value-added products to the list.
 
“Obviously, Canacero isn’t just seeking to keep the 15 percent duties, but to include other products, especially those of higher value-added, such tubes and coated steel,” he said, while acknowledging that tubes have been severely hit by the Chinese imports.
 
Still on the issue of imported steel, Vedoya was reluctant to comment a recent move by Korean companies to review an existing CRC quota import deal signed with POSCO and Hyundai Hysco.
 
In late May, Mexico indicated the country was reviewing a CRC quota import deal that had been signed with POSCO and Hyundai Hysco Co, as KIA Motors has just started up auto production at its Pesqueria plant in the state of Nuevo Leon. Plant officials indicated they would need to exceed the limit set by the Mexican government in order to meet auto production rates.
 
“We do have capacity to provide them the specified steel,” Vedoya argued, declining to give further details, adding that Kia’s argument is “not valid.”
 
As for the volatility Ternium Mexico expects for 2017, Vedoya said such a trend should affect the steelmaker.
 
“The potential increase of interest rates following the US elections will certainly impact Mexico, in addition to low oil prices. All this volatility should continue and this will impact Ternium,” he said.

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