Ternium Mexico, a subsidiary of Ternium based in Luxembourg, considers that workers' strike at the General Motors, Ford and Stellantis plants in the United States will have a "minimal impact" on its sales, although other companies will be affected, according to experts of the sector.
“Ternium foresees minimal impact due to strikes in the United States,” said César Jiménez Flores, executive president of the steel company Ternium México, in an interview with the newspaper El Norte.
This minimal impact could be in line with recent news from SteelOrbis regarding a Mexican government report on coated steel.
The report said that Ternium, Galvasid, Tyasa and Villacero allocate their production mainly to companies in the construction and household appliances sector and Tenigal (joint venture between Ternium and Asian companies Nippon Steel Corporation), Nucor JFE Steel México and Posco México market their production to the automotive industry.
Alberto Bustamante, former president of Mexico’s National Auto Parts Industry (INA, business chamber), told SteelOrbis last week that the strike at the three automotive plants in the United States could generate a negative impact on auto parts production in Mexico.
The official estimate from the INA is $10.9 million per day in the first week of the United Auto Workers (UAW) strike that began Friday, September 15.
According to Bustamante, the impact in Mexico will be multimillion-dollar if the strike extends to the more than 150 production plants controlled by the UAW.
Yesterday, Sunday, the workers' union warned that "it is willing to extend the strike" if differences remain to reach an agreement on a salary increase.
With more than 900 company members of the INA, Mexico is the fourth largest supplier of auto parts in the world. It is the largest supplier to the United States with a market share of 42.9 percent, far surpassing the second largest supplier, Canada with 10.9 percent, and China, which contributes 7.7 percent.