LUXEMBOURG, Aug 25, 2010 (MARKETWIRE via COMTEX) -- Ternium S.A. /quotes/comstock/13*!tx/quotes/nls/tx (TX 31.37, +0.50, +1.62%) announced today that it has completed its previously announced acquisition of a 54% ownership interest in Colombia-based Ferrasa through a capital contribution in the amount of US$74.5 million. Following the application of part of the proceeds of this capital contribution to repay financial debt, Ferrasa will have consolidated financial debt of approximately US$131 million.
Ferrasa has a 100% ownership interest in Sidecaldas, Figuraciones and Perfilamos del Cauca. These companies have combined annual sales of approximately 300,000 tons, including a long steel making and rolling facility with annual production capacity of approximately 140,000 tons.
Ternium has also completed the acquisition of a 54% ownership interest in Ferrasa Panama for US$0.5 million. Ferrasa Panama is a long steel products processor and distributor based in Panama.
Through these investments Ternium is expanding its business and commercial presence in Colombia, a country that is experiencing significant growth, as well as in Central America.
Forward Looking Statements
Some of the statements contained in this press release are "forward-looking statements." Forward-looking statements are based on management's current views and assumptions and involve known and unknown risks that could cause actual results, performance or events to differ materially from those expressed or implied by those statements. These risks include but are not limited to risks arising from uncertainties as to gross domestic product, related market demand, global production capacity, tariffs, cyclicality in the industries that purchase steel products and other factors beyond Ternium's control.
About Ternium
Ternium is a leading steel company in Latin America, manufacturing and processing a wide range of flat and long steel products for customers active in the construction, home appliances, capital goods, container, food, energy and automotive industries. With its principal operations in Mexico and Argentina, Ternium serves markets in the Americas through its integrated manufacturing system and extensive distribution network. The Company has an annual production capacity of approximately ten million tons of finished steel products. More information about Ternium is available at
www.ternium.com.
SOURCE: Ternium S.A.
