Paolo Bassetti, Ternium’s CEO, said Nippon, a shareholder in Brazil with flats producer Usiminas, has “lost its track,” he told Brazil media Hoje Em Dia.
The executive claimed Nippon, which divides the control of Usiminas with Ternium, has often opposed Ternium while discussing decisions for Usiminas.
“When we started to see difficulties at Usiminas, Nippon commenced opposing [us.] They think they can do everything they want. Nippon has lost its GPS,” he said.
Bassetti said clear terms in Mexico helped the two shareholders have a positive partnership in that country, but relations in Brazil are different.
“We have a 45-year relationship with Nippon. In Mexico, there are no issues. We got into Usiminas because we had confidence [in this partnership in Brazil,]” he said.
Ternium’s Mexican JV with Nippon, Tenigal, expects to double HDG and galvannealed sheet output in Mexico to 830,000 mt/year.