Ternium

Investing in Job Training

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Authors

Francisco Vargas

Francisco Vargas

Priscila Santos

Priscila Santos

David Manzo

David Manzo

Xavier Andrew Salinas

Xavier Andrew Salinas

Valdemar Garcia Davila

Valdemar Garcia Davila

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professor

Consuelo Garcia-de-la-torre

Consuelo Garcia-de-la-torre

Global Goals

4. Quality Education 8. Decent Work and Economic Growth 9. Industry, Innovation and Infrastructure 11. Sustainable Cities and Communities 17. Partnerships for the Goals

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Summary

The economy of Mexico is composed mainly of small and medium size companies. Most have a hard time training their employees due to lack of capital.

Ternium's ProPymes program, along with the Government of the State of Nuevo León, is a catalyst that develops and strengthens SMEs (small and medium-sized enterprises) with the objective of creating well-being and sustainability within the value chain. The objective is that Ternium's clients or suppliers maintain or improve the competitiveness of their products, services and business processes.

Ternium covers 80% of the cost of the training and the client or supplier contributes 20% plus taxes. The program is made up of the following modules:

● Leadership for Industrial Excellence
● Operations and Quality
● Entrepreneurial Management and Business Models
● Marketing and commercialization
● Finance
● Strategy and Innovation
● Sustainable Development and Project Presentation

Innovation

Ternium is a pioneer in investing in the training of its suppliers and clients, which it does in conjunction with the state government and public and private universities. The objective is to train customers and suppliers on relevant information to develop the principles, values, shared vision and objectives in order to make a social impact. The company seeks to strengthen its commercial relationships with its small suppliers, through the opportunity of improving management and various areas of the company.

The innovation of the program focuses on partnerships for UN Sustainable Development Goal number 17. Partnerships for the Goals. Ternium focuses on developing a tool to improve the knowledge and skills of SMEs (small and medium-sized enterprises) to achieve joint benefits that over time, become products and services. This is considered innovation because these practices are not common in Mexico and are making a difference, we believe that if we change the way of doing business we can change the world.

Investing in Job Training

Inspiration

The inspiration comes from Paolo Rocca the President of Grupo Techint, as he says "The rational vision of problems, the will to excellence, the ability to do things well and the value for work well done, together with the trust in education for the social and economic progress of the family, are strong values ​​for the Techint Organization, and that guide us in each activity," and due to a need in Argentina, where opportunities in the market are very scarce, and having economic problems to devise a way to support their value chain (customers and suppliers) to be more productive and efficient, optimizing costs and increasing the sales. This vision is to provide value education to communities to be able to produce more in order to generate growth for people, industry and the region.

Overall impact

This program improves the competitiveness and development of the Mexican industry. It supports the growth of SMEs, this is particularly relevant because SMEs achieve 72% of jobs and 52% of national GDP in Mexico. By training professionals, the program gives them the opportunity of being more efficient and competitive, which helps them obtain better wages and a better lifestyle.

Ternium has the commitment towards society and is convinced that industrial activities are always related to social development, therefore these efforts prepare society to face present and future challenges. It has been demonstrated that small and medium enterprises have already increased their productivity generating more employment and better conditions for the community.

Business benefit

With this support to the clients and suppliers Ternium seeks to achieve improvement on their performance, maintaining or improving the competitiveness in their products, services and processes. By investing in its value chain, it is expected to obtain a better relationship and increase the efficiency and productivity of all those involved.

Social and environmental benefit

Ternium's achievements with this program have improved many areas in its value chain concentrated in the main objective, which is to provide a source of formal training and information focused on the best practices of small and medium enterprises.

The Propymes program is not only a benefit for companies, but also for society, since the results obtained have generated more employment and better wages. At the same time, this program has raised awareness among entrepreneurs to invest in development for employees.

Interview

Jose Guadalupe Olvera, Manager of SMEs business

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Business information

Ternium

Ternium

San Nicolás de los Garza, NL, MX
Business Website: http://www.ternium.com
Year Founded: 2005
Number of Employees: 5001 to 10000
Ternium is a manufacturer of flat and long steel products with production centers in Argentina, Mexico, Guatemala, Colombia and the United States. It is the leading steel company in Latin America with highly integrated processes to manufacture steel and value-added products. Along with Nippon Steel and Companhia Siderurgica Nacional, Ternium owns Usiminas of Brazil. The company takes its name from the Latin words Ter (three) and Eternium (eternal) in reference to the integration of the three steel mills.