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Ternium SA announced that an explosion occurred yesterday during routine maintenance work at the DRI intake of an electric arc furnace at its Guerrero facility in Monterrey, Mexico.

The cause of the incident is under investigation.

The company regrets to inform that, up to date, the incident caused four fatalities; in addition, ten injured persons continue receiving medical treatment as necessary.

Ternium Mexico is following the contingency plan prepared for these situations, which includes notification to the appropriate governmental agencies. At this time Ternium cannot estimate the cost and required time for completion of the repairs or restart of steelmaking operations, as investigations and damage-assessment are in the initial stage.

The Guerrero facility has an annual thin slab casting production capacity of 2.3 million tonnrs per year. Ternium's total annual finished products production capacity is approximately 10.8 million tonnes.



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