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INVESTMENTS IN NON-CONSOLIDATED COMPANIES | 12 Months Ended
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Dec. 31, 2017
Disclosure of interests in other entities [Abstract] |
INVESTMENTS IN NON-CONSOLIDATED COMPANIES |
| As of December 31,
| 2017 |  | 2016
At the beginning of the year | 418,379 |  |  | 250,412 |
Equity in earnings (losses) of non-consolidated companies | 68,115 |  |  | 14,624 |
Other comprehensive income | (4,786 | ) |  | 39,077 |
Acquisition of additional shares (note 3) | — |  |  | 114,449 |
Dividends from non-consolidated companies | (3,360 | ) |  | (183 | )
At the end of the year | 478,348 |  |  | 418,379 |
The principal investments in non-consolidated companies, all of which are unlisted, except for Usiminas, are:
|  |  |  |  |  | Voting rights at |  | Value at
Company |  | Country of incorporation |  | Main activity |  | December 31, 2017 |  | December 31, 2016 |  | December 31, 2017 |  | December 31, 2016
Usinas Siderurgicas de Minas Gerais S.A. - USIMINAS |  | Brazil |  | Manufacturing and selling of steel products |  | 34.39 | % |  | 34.39 | % |  | 466,299 |  |  | 411,134 |
Techgen S.A. de C.V. |  | Mexico |  | Provision of electric power |  | 48.00 | % |  | 48.00 | % |  | 6,862 |  |  | 3,444 |
Other non-consolidated companies (1) |  |  |  |  |  |  |  |  |  | 5,187 |  |  | 3,801 |
|  |  |  |  |  |  |  |  |  | 478,348 |  |  | 418,379 |
(1) | It includes the investment held in Finma S.A.I.F., Arhsa S.A., Techinst S.A., Recrotek S.R.L. de C.V. and Gas Industrial de Monterrey S.A. de C.V.
(a) | Usinas Siderurgicas de Minas Gerais S.A. – USIMINAS
Usiminas is a Brazilian producer of high quality flat steel products used in the energy, automotive and other industries. As of December 31, 2017 and 2016, the value of the investment in Usiminas is comprised as follows:
| USIMINAS
Value of investment | As of December 31, 2017 |  | As of December 31, 2016
At the beginning of the year | 411,134 |  |  | 239,960 |
Share of results (1) | 63,030 |  |  | 16,832 |
Other comprehensive income | (4,570 | ) |  | 39,893 |
Dividends | (3,295 | ) |  | — |
Acquisition of additional shares (note 3) | — |  |  | 114,449 |
At the end of the year | 466,299 |  |  | 411,134 |
(1) It includes the adjustment of the values associated to the purchase price allocation. The investment in Usiminas is based in the following calculation:
Usiminas' shareholders' equity | 4,164,086 |
Percentage of interest of the Company over shareholders' equity | 20.47 | %
Interest of the Company over shareholders' equity | 852,263 |
Purchase price allocation | 78,688 |
Goodwill | 314,218 |
Impairment | (778,870 | )
Total Investment in Usiminas | 466,299 |
On February 8, 2018, Usiminas approved its annual accounts as of and for the year ended December 31, 2017, which state that revenues, net profit from continuing operations and shareholders’ equity amounted to USD 3,368 million, USD 100 million and USD 4,164 million, respectively.
| USIMINAS
Summarized balance sheet (in million USD) | As of December 31, 2017 |  | As of December 31, 2016
Assets |  |  |
Non-current | 5,662 |  |  | 6,086 |
Current | 1,494 |  |  | 1,277 |
Other current investments | 164 |  |  | 472 |
Cash and cash equivalents | 535 |  |  | 221 |
Total Assets | 7,855 |  |  | 8,056 |
Liabilities |  |  |
Non-current | 637 |  |  | 753 |
Non-current borrowings | 1,707 |  |  | 2,104 |
Current | 622 |  |  | 517 |
Current borrowings | 299 |  |  | 21 |
Total Liabilities | 3,265 |  |  | 3,395 |
Non-controlling interest | 426 |  |  | 508 |
Shareholders' equity | 4,164 |  |  | 4,153 |
| USIMINAS
Summarized income statement (in million USD) | As of December 31, 2017 |  | As of December 31, 2016
Net sales | 3,368 |  |  | 2,443 |
Cost of sales | (2,854 | ) |  | (2,292 | )
Gross Profit | 514 |  |  | 151 |
Selling, general and administrative expenses | (206 | ) |  | (180 | )
Other operating income (loss), net | (78 | ) |  | (61 | )
Operating income | 230 |  |  | (90 | )
Financial expenses, net | (145 | ) |  | (17 | )
Equity in earnings of associated companies | 49 |  |  | 40 |
Profit (Loss) before income tax | 134 |  |  | (67 | )
Income tax benefit | (34 | ) |  | (99 | )
Net profit (loss) before non-controlling interest | 100 |  |  | (166 | )
Non-controlling interest in other subsidiaries | (26 | ) |  | (28 | )
Net profit (loss) for the year | 74 |  |  | (194 | )
(b)Techgen S.A. de C.V. Techgen is a Mexican natural gas-fired combined cycle electric power plant in the Pesquería area of the State of Nuevo León, Mexico. The company started producing energy on December 1st, 2016 and is fully operational. As of February 2017, Ternium, Tenaris, and Tecpetrol International S.A. (a wholly-owned subsidiary of San Faustin S.A., the controlling shareholder of both Ternium and Tenaris) completed their investments in Techgen. Techgen is currently owned 48% by Ternium, 30% by Tecpetrol and 22% by Tenaris. Ternium and Tenaris also agreed to enter into power supply and transportation agreements with Techgen, pursuant to which Ternium and Tenaris will contract 78% and 22%, respectively, of Techgen’s power capacity of 900 megawatts. During 2017 and 2016, Techgen’s shareholders made additional investments in Techgen, in the form of subordinated loans, which in the case of Ternium amounted to USD 23.9 million and USD 92.5 million, respectively which are due in June 2020. For commitments from Ternium in connection with Techgen, see note 25.

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