In its last May/June edition, the recognized international journal of Steel dedicated an article to Ternium's remarkable performance in Mexico, and its appropriate positioning in the automotive industry.

Despite 2013 was not positive for the Steel industry in Mexico, with a consumption plummeting of 9%, the economist Germano Mendes de Paula explains in the Steel Times International that the macroeconomic and sectorial perspectives of the country are favourable for companies like Ternium. With 11 industrial plants, three of them completely integrated, the company has its major operational base in Mexico and is prepared to take new challenges in an automotive market that continues growing.

The International Monetary Fund estimates the Mexican GDP will increase 3% in 2014 and 3.5% in 2015, while inflation rate for consumers will stay around 3-4% during the same period and unemployment rate will fall from 4.9% to 4.3%. Meanwhile, the car production has expanded from 1.5 million units in 2004 to 2.9 million in 2013, exporting more than 80% of production. Currently, Mexico is positioned in fourth place in the car export ranking, and according to Ernst & Young consultants it will reach the second place in the next years to come.

Mendes de Paula argues that Ternium has different competitive advantages that cause its differentiation and allows its adaptation to Mexico's growing industry. With 11 distribution centers located in the main urban centers of the country, it maintains a significant market share and reduces logistical costs. The possession of 100% of Las Encinas mine and 50% of Peña Colorada mine with ArcelorMittal are also essential elements that the article points out.

Ternium entered the Mexican Steel industry in 2005 with the acquisition of Hylsa and Imsa two years later. Since then, it has made large investments, like the construction of the new Industrial Center in Pesquería (USD 700 million) and Tenigal (USD 350 million), focused in the high-end market. These plants allow Ternium to increase its sales while expanding its product portfolio.

In 2013, Ternium generated sales of USD 8.5 billion, concentrating 50.2% in Mexico, followed by Argentina and the South region (35%), while the remaining 15% was distributed among the Andean Market, Central America and the United States. Undoubtedly, Ternium will continue working in this direction, adapting to the constant macroeconomic and industrial growth in Mexico.

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