Steel producer Ternium eyes $600 million capex this year

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The logo of the steelmaker Ternium, who turned a gym into a centre to receive patients suffering from the coronavirus disease COVID-19, is pictured outside its plant, in Monterrey

MEXICO CITY (Reuters) -Steel producer Ternium expects its 2022 capex to reach $600 million, Chief Financial Officer Pablo Brizzio said in a call with analysts to discuss first quarter results on Wednesday.

The investments will be used to boost production in its plants, especially in Mexico, which accounted for 53% of steel shipments in the first quarter of 2022.

Asked about the impact of legislative changes in Mexico's energy industry, Brizzio said he does not expect a lot of investments in Mexico from Ternium and other firms until the legal framework is clarified.

Ternium reported on Tuesday a first-quarter net income of $877.5 million, up 24% from the year-ago period.

Brizzio and chief executive Maximo Vedoya forecast more market volatility during the rest of the year, as the war between Russia and Ukraine drags on and a strict lockdown in China to contain the spread of COVID-19 hurts the globe's second largest economy.

(Reporting by Valentine Hilaire; Editing by Daina Beth Solomon and Chizu Nomiyama)

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