Ternium Mexico is considering a new Mexican mill as a way to meet the new requirements of the USMCA deal, according to media reports. The company said it could either establish a joint venture or build a slab facility to produce steel sheets for the North American automotive industry.
Cesar Flores, CEO of Ternium Mexico, said there are stricter rules to produce steel for the automotive industry under the USMCA rules. North American exports of autos will need to follow the USMCA origin rules by sourcing 75 percent of steel domestically.
“We’d need to build a steelshop, a mill that produces steel out of iron ore … and generate the slab (product). We have space in Pesqueria, where we have our most modern and sustainable rolling mill,” Flores said.
Ternium Mexico currently sells about 2 million mt/year of steel for the automotive industry, and it expects to increase steel sales volumes following its investment in a new hot rolling mill in Pesqueria.