Alejandro DeMatteo's questions to Ternium SA (TX) leadership • Q4 2024
Question
Alejandro DeMatteo of Jefferies asked if Ternium's strategy to navigate potential trade tariffs included pausing new investments in Mexico and inquired about the impact of scrap exports on its cost base in Argentina.
Answer
CEO Maximo Vedoya confirmed that Ternium is not considering pausing any investments, as the new capacity is essential for substituting third-country imports and will be crucial as rules of origin are strengthened. He also clarified that scrap exports from Argentina are not a significant issue for Ternium's local operations, as its blast furnace-based production there uses very little scrap.