Ternium - a new steel giant is launched

The following article appeared today in www.33MetalProducing.com, about the launch of Ternium, a new 12 million tonne Latin American steel giant. For original article, see here.

Ternium, the new Latin American steelmaking conglomerate, has been launched by Techint Group following its recent completion of Hylsamex. The new company has an estimated annual production capacity off 12 million metric tons and an estimated capitalization of $5 billion.

Following the official launch of Ternium, Brazilian steelmaker Usiminas announced it will invest $100 million in cash to raise its stake in Ternium to 16%. Usiminas said its stake would stem from minority investments held in component companies before Ternium’s formation.

The move to create Ternium stemmed from Argentina-based Siderar S.A.’s $2.1 billion takeover of Hylsamex, centered in Monterrey, Mexico. Siderar acquired 57.5% of Hylsamex, then paid $896.9 million to Mexico’s Grupo Alfa for the additional 42.5%. Finally, Alfa reports it took a dividend of $61 million and further $107 million for its minority stake in Venezuelan steelmaker Siderúrgica del Orinoco CA (Sidor.)

In 1998, Alfa and Siderar were co-investors in the privatization of Sidor. Ternium operates as Sidor in Argentina and Venezuela, now.

Ternium does not include the Latin American assets of Techint's global tubemaking organization, Tenaris.

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