USNZY Usinas Siderurgicas De Minas Gerais SA (PK)

Latin American steelmaker Ternium SA (TX) focused on growth opportunities in taking a 28% stake in Brazil flat steel producer Usinas Siderurgicas de Minas Gerais S/A (USNZY, USIM5.BR), or Usiminas, Ternium Chief Executive Daniel Novegil said during a conference call Monday.

"Brazil is the largest market in the region, and we expect it to grow in the coming year," Novegil said.

Ternium expanded its presence in Brazil in the Usiminas deal, entering the steelmaker's controlling shareholders group with a 27.66% stake. Ternium joins Japan's Nippon Steel Corp. (NISTY, 5401.TO), which holds 29.45% of the Minas Gerais steelmaker's ordinary shares.

In light of the Usiminas stake, Ternium is reviewing its plans to build a steel slabs plant at the Acu port under construction by Brazilian logistics firm LLX Logistica S/A (LLXL3.BR), part of billionaire Eike Batista's industrial empire.

"We are reassessing the Acu facility," Novegil said, adding that the focus is on possible changes to the size and production volume at the plant. By purchasing the stake in Usiminas, Ternium now has greater access to steel slab production than previously, Novegil added.

Ternium is also not considering a possible merger with Usiminas, a move that had been raised by analysts, Novegil said.

"No, we're really not considering any movement such as [combining the companies]," Novegil said.

-By Jeff Fick, Dow Jones Newswires; 55-21-2586-6085; jeff.fick@dowjones.com

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