Steelmaking group Ternium Techint expects its Techgen JV in Mexico to start up between October and Q4, a company’s executive told analysts during a Q2 conference call.
Ternium and Tecpetrol announced in 2013 plans to build a combined cycle power plant in Pesquería, Nuevo León, with a capacity of 900 megawatts.
The project, comprised of three gas and one steam turbine, will supply energy to the manufacturing plants of TenarisTamsa and Ternium in Mexico.
“In the case of Techgen … we said that the starting point of the facility was expected for October 2016. We are approaching that month. We are glad to say that we'll fulfill that commitment and the facility will be up and running by October this year,” Ternium’s CFO, Pablo Brizzio, said while talking to analysts and investors.
Currently in a “testing mode,” the plant is reaching its “last month of testing” and should commence output by October “or during the fourth quarter.”
“We expect no delays or no changes in the original plan in respect to that facility,” the executive said.
“In relation to the capital contribution to Techgen, … remember that we financed a significant portion of that CapEx and at the very end of the investment process, we needed to contribute some money to get to 100 percent of the CapEx expected. So we are doing that and we are expecting to have finalizing this contribution by Q3 and in Q4 go into production. So this project is working and not only expected in time, but also is perfectly on budget,” he added.