Argentinas Techint Group will invest a record $600
million in 2013 to modernize its operations, expand production
capacity and consolidate its leadership, according to
steelmaking subsidiary Ternium SA.
"Our challenges involve betting
on regional integration and increasing productivity to become
more competitive in a context of rising costs, and an economy
that will grow in the coming years at a lower rate than in the
past decade," Techint chief executive officer Paolo Rocca said
in a seminar in Buenos Aires, Argentina, published on
Terniums website Jan. 22.
Rocca also highlighted the need
to take action to protect production in Latin America.
This is under threat from the
"predatory actions of China," which exports manufactured goods
in unfair competition conditions, creating "an obstacle to the
reindustrialization of our countries," he said.
Rocca warned that, faced with a
complex international context, metalworking companies must
focus on competitiveness, which will require effort and
investment in automation, scale, training and management, among
In an increasingly volatile and
uncertain world, deindustrialization in Latin America must be
reversed to return to conditions that encourage productive
investment and strengthen the value chain, Ternium chief
executive officer Daniel Novegil said at the event. He cited
the association of Ternium and Brazils Usinas
Siderurgicas de Minas Gerais SA (Usiminas) as an example of
regional integration that helps enhance the Latin American
"Our biggest challenge is to
maintain relevant investment levels that allow us to develop
and grow further in the region," he added.
In 2012, Ternium invested $250
million in Argentinian steel works Ternium Siderar, and this
year plans to spend between $220 million and $240 million,
Novegil said. This is well above the $80-million annual average
for 1993 to 2003 and the $170-million average for 2004 to
A version of this article was first
published by AMM sister publication Steel