Ternium SA
TX
Materials
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exclusion reasons
2 themes
This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.
Ternium S.A. is a Latin American steel producer whose business is fundamentally extractive. The company mines iron ore, its primary raw material, at its own operations in Mexico. This mining activity is not incidental; it is a core, vertically integrated part of its industrial process to produce steel slabs, hot-rolled, cold-rolled, and galvanized products. As a steel manufacturer, Ternium extracts and processes non-fuel minerals (primarily iron ore) on an industrial scale to feed its production facilities, placing it squarely within the extractive industries category.
Ternium S.A. is a Latin American steel producer with major integrated steelmaking operations in Mexico, Argentina, Colombia, and the United States. The steel industry is inherently resource-intensive and polluting, and Ternium's specific environmental record has drawn documented scrutiny. The company has faced allegations of significant environmental damage linked to its operations, including toxic contamination and ecological harm.
In 2021, a report by the Business & Human Rights Resource Centre (BHRRC) highlighted serious environmental concerns related to Ternium's operations in Pesquería, Mexico. Local communities and civil society organizations alleged that the company's steel plant was contaminating air, soil, and water resources, impacting the health and livelihoods of nearby residents. These allegations point to a pattern of localized ecological damage stemming from the company's industrial activity. While Ternium has publicly denied wrongdoing and emphasized its social responsibility programs, the persistence of these community-level complaints indicates ongoing environmental risks associated with its facilities.
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