Ternium SA ADR Dossier
Qualitative Analysis
Business overview
Ternium S.A. (NYSE: TX) is the largest flat steel producer in Latin America, operating integrated and non-integrated steelmaking facilities across Mexico, Brazil, Argentina, Colombia, the southern United States, and Central America. The company operates through two primary segments: Steel and Mining. The Steel segment produces high-value slabs, hot-rolled and cold-rolled coils, galvanized sheets, and specialized steel parts tailored for demanding industrial sectors such as automotive, construction, and home appliances. The Mining segment focuses on iron ore extraction and pelletization, primarily serving as an internal supply chain mechanism. Ternium holds a controlling 51.5% interest in Usiminas of Brazil and controls Ternium Argentina, positioning it as a dominant regional player. The company is majority-controlled by San Faustin S.A., which is ultimately managed by the Rocca family's Techint Group.
Research as of 28 Jul 2026
Strategic Initiatives
Growth programs, investments, and their expected impact
A massive capital investment program to expand downstream and upstream steelmaking capacity in Nuevo León, Mexico. The project includes a push-pull pickling line (started Q4 2024), a cold rolling mill (1.6 mtpy) and hot-dip galvanizing line (600 ktpy) which began operations in early 2026, and a new EAF-based steel shop (2.6 mtpy) and DRI module (2.1 mtpy).
Expected impact: Positions Ternium to capture growing nearshoring demand in Mexico, particularly from automotive and advanced manufacturing customers, while complying with USMCA 'melted and poured' requirements and reducing CO2 emissions per ton.
Integration of Usiminas operations into Ternium's consolidated decarbonization target. The company aims to achieve a 15% reduction in CO2 equivalent emissions intensity per ton of hot-rolled steel equivalent by 2030 (using 2024 as the base year), covering Scope 1, Scope 2, and Scope 3 (categories 1 and 10) emissions.
Expected impact: Aligns operations with global low-carbon steelmaking standards and supports the energy transition of industrial customers.
Mergers, Acquisitions & Partnerships
Recent deals and strategic collaborations
Recent Acquisitions
Acquisition of 153.1 million ordinary shares of Usiminas from Nippon Steel Corporation and Mitsubishi Corporation to consolidate control. The transaction increased the aggregate participation of the Ternium-led T/T Group to 92.9% of the Usiminas control group.
Financial impact: Consolidates Usiminas' financial and operational results fully into Ternium, while also integrating its decarbonization targets and addressing ongoing historical litigation provisions.