MEXICO CITY, (Reuters) – Steel producer Ternium intends to invest around $1 billion in expanding its northern Mexico plant. This was a statement made by a senior executive during a conference call discussing fourth quarter results.

Maximo Vedoya (Ternium’s chief executive) said that the company was in the final stages of launching an expansion initiative to enhance all the capabilities in the Pesqueria facility.

This investment will be used to expand a Mexican facility known as Pesqueria near Monterrey. It was established in 2013 and recently acquired a hot-rolling machine to service the construction, appliance, automotive sectors.

A second cold rolling mill is included in the expansion, along with a third zinc-galvanizing mill. There are also several lines for finishing.

This steel producer, with operations in Mexico, Brazil and Argentina, as well as Central America, reported a net income of $4.3 billion for the fourth quarter. That’s up from an $867 million loss in the previous year.

Ternium’s shipment volume was 2.8 million tonnes in the third quarter 2021. This is a decrease of 8% from 2020. It is primarily due to lower steel imports in Mexico.

Mexico is one of its major markets and the company saw a drop in shipments. This was due to supply chain problems, as well as a shortage of semiconductors needed for car manufacturing. One fourth of the company’s sales are made by its auto sector.

Pablo Daniel Brizzio (Ternium Chief Operating Officer) stated that he anticipates increased finished steel shipment in the area during the first quarter.