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With the extension, which still depends on the approval of the governor of the state, the tax benefit will cover imports and local acquisition of machinery, plus acquisitions of iron ore, pellets, ferroalloys, coal, coke and steel scrap.

The investments derived from the tax benefits are estimated at $1.0 billion, chiefly by Ternium, located in Santa Cruz, in the west zone of the city of Rio de Janeiro.

Such investments are expected to support the local expansion of Ternium, while helping to preserve the level of employment in the state, where the total loss of jobs is estimated at 780,000 positions over the last eight years.

The Ternium unit in Santa Cruz is an integrated producer of slab, with shipments of 1.21 million mt in 2021.