Latin America-focused steelmaker Ternium said in a Securities Exchange Commission (SEC) document filing that its Argentinian subsidiary, Ternium Argentina, signed supply contracts with providers that are worth $55.3 million.
The document filing, which was made available by Ternium on March 31, said Ternium Argentina also signed various contracts for the provision of natural gas. The company is expected to pay $8.1 million by April this year to Tecpetrol, a Ternium-related company.
“Additionally, Ternium Argentina signed contracts for gas transportation with related companies, Transportadora de Gas del Norte S.A. and Energy Consulting Services S.A., assuming firm commitments for a total of $28.5 million payable until April 2028,” Ternium said.
A third contract for the supply of oxygen, nitrogen and argon by Air Liquide Argentina SA will cost Ternium Argentina another $18.7 million. The supply should cover the rest of the ongoing year, and is due to terminate in 2034.
Ternium also labeled Argentina’s economic environment as “complex and volatile.”
“The recession the Argentine economy was going through at the end of 2019 coupled with the effects of the COVID-19 outbreak in March 2020 significantly affected economic activity and macroeconomic variables in the country,” Ternium said.