LUXEMBOURG--(Marketwired - Sep 26, 2014) - Ternium S.A. (NYSE: TX) announced today that the board of directors of Usinas Siderúrgicas de Minas Gerais S.A. - USIMINAS ("Usiminas") passed a resolution dismissing the company's chief executive officer (Diretor-Presidente) and two other executives from their respective positions at the Usiminas board of officers. The board resolution dismissing the officers was passed with a 5 to 5 vote, and the tie was resolved by the chairman of the board through his casting vote.
The dismissal of the officers is part of a controversy that arose within the Usiminas control group with respect to rules applicable to the appointment of senior managers. Ternium believes that the votes cast by the NSSMC Group-appointed members were computed in violation of the shareholders agreement that governs the rights of the members of Usiminas' control group. The NSSMC Group is comprised by Nippon Steel & Sumitomo Corporation, Mitsubishi Corporation and Metal One Corporation.
Following the dismissal of the officers, the position of CEO of Usiminas will be held, on a temporary basis until a new board of officers is agreed between the T/T Group (composed of Ternium S.A., Siderar S.A.I.C. and Confab Industrial S.A.) and the NSSMC Group, by Romel Erwin de Souza, Usiminas' current Vice-president of Technology, who was elected with the same votes that decided the dismissal.
Ternium intends to take all reasonable actions to protect its rights and investment in Usiminas.
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 producer in Latin America, with an annual production capacity of approximately 10.9 million tons of finished steel products. The company manufactures and processes a broad range of value-added steel products for customers active in the construction, automotive, home appliances, capital goods, container, food and energy industries. With production facilities located in Mexico, Argentina, Colombia, the southern United States and Guatemala, Ternium serves markets in the Americas through its integrated manufacturing system and extensive distribution network. In addition, Ternium participates in the control group of Usiminas, a Brazilian steel company. More information about Ternium is available at www.ternium.com.
