The second day of ALACERO Summit 2024 featured the participation of the CEO of Ternium in the panels “Regionalization and Nearshoring: The Mexican Experience” and “Agenda and Perspectives of the Regional Steel Industry.”
During the first meeting, Máximo Vedoya highlighted: “I believe that the Mexican business sector is very optimistic with Claudia Sheinbaum's government. The president has, and has expressed, a clear idea in industrial and economic terms. She talks a lot about strengthening ties with the North American region, enhancing infrastructure, and developing the energy matrix.”
In addition, the CEO of Ternium emphasized the integration of value chains and said: “Mexico has done a better job in Latin America on this issue. It is very important for economic growth and development to integrate SMEs. Mexico exports 600 billion dollars, but with a value-added content of less than 20%. In this sense, there are many things we can do CAINTRA.”
When asked about Mexican industrial development, he asserted: “Mexico's path took a long time and did not start with NAFTA or the trade war with China. Since 1985, they realized that this industrial policy is key to the development of a country, and I believe all Latin American countries should do this. Industrial employment is of much better quality than in other activities.”
In terms of regional trade, Vedoya emphasized: “President Sheinbaum stated that she wants to reinforce the relationship with North America through strong Latin American integration. There are U.S. senators already debating the possibility of adding more allies in the Americas. Beyond that, it is up to the countries to decide whether they want to integrate with the United States or strengthen their ties with China. These are opposing decisions.”
Then, the CEO of Ternium participated alongside Jefferson de Paula, president of AcerorMittal Brazil, and Gustavo Werneck, CEO of Gerdau, in the panel “Agenda and Perspectives of the Regional Steel Industry,” where he highlighted: “Latin America is one step behind what is happening in Mexico. On one hand, Argentina is going through an economic process after a 'reset,' but the controls do not favor industrial development. Meanwhile, in Brazil, they are beginning to recognize the importance of strengthening their industry. Until recently, it was the industrial powerhouse of the region. I believe that, little by little, it is changing, although it is still far from Mexico.”
Delving into the regional perspective in terms of decarbonization, Vedoya noted: “Decarbonization involves a cost; it is an investment. In Europe, many subsidies are being granted. This must be a global effort, not just from a few societies. We need to understand where Latin America stands in this process. The region has some of the countries with the lowest per capita CO₂ emissions in the world. The rest of the world must do its part. The steel industry is also making its efforts. At Ternium, we are investing in direct reduction and natural gas, which will allow us to reduce our emissions by two-thirds in the future.”
Regarding talent management and the challenge of new technologies for training new talent, the CEO of Ternium clarified: “There is a very large change. Today, when a young person enters Ternium, they see a product with a lot of technology and development, with industrial complexes very different from what one had in mind in the past. They see that it is a product of the future. They are seeing that steel will be very important in this decarbonization. We focus a lot on technical education in all the countries where we operate.”
Then, Vedoya analyzed the unfair competition from China and stated: “I believe that in our region, we need to clearly understand where we stand. The Chinese produce steel through subsidies and an industrial policy focused on dominating industries. One can compete with other industries, but it is difficult to compete with states. We need to focus on improving our competitiveness and on how to use laws to defend the industry, just as Europe and the United States do. If we want to maintain quality jobs, we must compete on equal terms.”
To conclude, Vedoya emphasized: “TERNIUM is investing more than 2 billion dollars in the region and I believe we are in a unique situation with regionalization. I leave with a good impression of the congress, with panelists who share our vision. It is very important for the entire value chain to work together to achieve our goals and take advantage of this moment for the industrial development of Latin America.”