In the recently published Annual Report, Ternium’s President, Paolo Rocca, writes that the company saw good results in 2017 and paved the way for a new era of transformation and growth.
In the letter, which forms part of the recently published Ternium Annual Report for 2017 (which can be seen here in full), Paolo Rocca said that he was excited by how the company performed in the past year and offered a glimpse of the company’s plans for the future:
“The integration of the modern slabbing plant in Rio de Janeiro and our new industrial center in Pesquería, Mexico, along with our expansion products, will transform our industrial system and capacity to develop products, acting as catalysts for the implementation of advanced manufacturing technologies throughout the company.”
The report, which was presented in March, showed a significant increase in steel deliveries compared to 2016: 11.5 million tons, a 19% increase over the previous year.
“In 2017, Ternium laid the foundations for a new cycle of growth over the next few years,” Rocca stated.
Addressing plans for the future, Rocca noted that industrial and technological excellence, customer service and competitive differentiation would be key vectors for Ternium as it seeks to maintain the profitability of its operations in the long term.
He also mentioned the volume of exports from China, which he described as “overwhelming and unfair”. Although he said that 2017 had been “encouraging” as these exports had reduced, he added that disloyal practices would continue. “We believe that the different commercial authorities in the region will take the appropriate measures.”
Rocca thanked Daniel Novegil for his work leading Ternium, which he described as “remarkable”, and said that Máximo Vedoya’s role would bring “continuity at management level and renewed energy” for the company’s transformation.
“Right now, we have an exciting opportunity to strengthen our position as an industrial leader in Latin America, adopting new digital technologies to achieve even greater levels of industrial excellence and integration with our suppliers and customers.”
Finally, he addressed the employees, customers, suppliers and shareholders, saying: “I would like to thank our employees for their efforts and achievements over the past year. I would also like to thank our customers, suppliers and shareholders for their continued support and trust in our company.”
The data from 2017
Sales and shipments increased in the second half of 2017 following the integration in September of the Brazil plant. EBITDA increased 25% to $ 1.9 billion, and the margins remained at leading levels in the industry.
In Mexico, shipments increased to a record 6.6 million. Furthermore, a $1.1 billion investment plan was announced for the construction of a new hot strip mill with an annual capacity of 4.1 million tons.
In Argentina, shipments increased by 11% to 2.3 million tons, reflecting the gradual recovery of the economy led by the agriculture, infrastructure and energy sectors.
In Colombia, a $90-million investment plan was announced to build a new steel bar plant with an annual production capacity of 520,000 tons. It is expected to start operating in the second half of 2019.