Starting December 1, all of Hylsa subsidiary companies such as Hylsa Norte, Hylsa Puebla, Galvak, Galvak Servicios, Aceros Prosima, Materiales y Aceros Masa, Metal Building Solutions, Ferropcion and Quimica Tecnica Avanzada, will become integrated under Ternium Hylsa. Therefore from that date on all invoicing should be issued to Hylsa S.A. de C.V.

“Simplification is the objective and we will see the largest advantages at the administrative areas” according to Gerardo Gonzalez head of the Administrative Department at Ternium Hylsa.  “We are now controlling 33 legal entities and once the merging project is completed – Hylsa being the most important – we will end up with 18 subsidiaries”.

“Before merging Galvak was a separate legal entity and Hylsa was another; when Hylsa sold material to Galvak an invoice had to be prepared and a payment had to happen, and there had to be a conciliation of accounts, and so on; after merging Galvak becomes another department at Hylsa, just like another production line. Today all purchasing goes on through electronic means; virtually”. In fact, says Gonzalez, integration is a tool for consolidating the functional structure that has already been put into effect at Ternium Hylsa.

Fiscal payments are an example of this simplification, where for each of the merged legal entities, 12 annual procedures have been eliminated. Additionally, at the treasury Department level the numbers of bank accounts are reduced and for financial statements a smaller number of legal entities are considered. “Administrative activities are reduced drastically at both accounting and a credit level….There is an administrative simplification”, he added.

Notification about these changes to both providers and customers through electronic mail and later through regular mail, started since November 25, through the commercial area and Exiros. At the same time, Ternium Hylsa will make available for customers just one service portal, as a result of the effects of integration. Although the advertising of these companies will keep the traditional logo, later on in the printed administrative documentation, the new Ternium Hylsa logo will be incorporated gradually.

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