UPDATE 1-Ternium says new steel mill to be built in northern Mexico
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MEXICO CITY, June 20 (Reuters) - Steelmaker Ternium said on Tuesday its new slab steel mill will be built and integrated into the company's existing Pesqueria facility in the northern Mexican state of Nuevo Leon.
Ternium had in February estimated a $2.2 billion investment in the new plant, set to be operational by the first half of 2026 and to have an annual production capacity of 2.6 million metric tons.
Maximo Vedoya, the steelmaker's chief executive, said in a statement the choice marked a "significant milestone" in integrating the group's downstream manufacturing to serve customers across the North American free trade region.
"The value chain in Mexico is rapidly addressing and responding to the growth opportunities presented by the near-shoring of manufacturing capacity," he said.
The company had said it was looking to build a new North America plant to comply with upcoming regulations for automakers under a regional trade pact, which will by 2027 require that at least 70% of the steel used in cars be "melted and poured" in the region.
This comes as many multinational firms selling to the U.S. are shifting production from China to Mexico. (Reporting by Sarah Morland and Kylie Madry; Editing by Muralikumar Anantharaman and Gerry Doyle)
