As the 2026 FIFA World Cup draws near, activists in Mexico are highlighting corporate involvement in human rights violations. Rallies in Guadalajara target Hyundai, the South Korean car manufacturer, due to its connections with Ternium, a major producer of steel and iron ore. Communities impacted by Ternium's mining activities have suffered from violence and enforced disappearances.
The protests center around the mysterious disappearance of two local leaders, Indigenous activist Antonio Díaz and attorney Ricardo Lagunes, who went missing in January 2023 after opposing Ternium's Aquila mine in Michoacán. Their case has become emblematic of broader issues surrounding corporate actions in regions marked by violence.
What is the significance of Hyundai's role in the supply chain? Hyundai, as a buyer of steel from Ternium, is seen as a participant in the complex web of operations that begins in areas fiercely afflicted by crime and human rights abuses. Activists urge Hyundai to evaluate its supply chain, claiming that its purchases from Ternium indirectly support these crimes.
Ternium has denied any involvement in the violence related to the disappearances of the two leaders, yet its own disclosures hint at systemic issues. Regulatory filings from Ternium note that its operations involve significant security and community risks, raising serious questions about accountability.
The problem of enforced disappearances is pressing in Mexico, with over 130,000 cases reported as of 2023. While certain disappearances involve organized crime, many others involve activists and community leaders resisting powerful economic entities. The disappearances of Díaz and Lagunes align with this concerning trend.
How are activists using the World Cup to raise awareness? With Guadalajara as one of the host cities for the upcoming World Cup, activists are organizing protests to keep attention on Mexico's human rights crisis amidst the celebration of the global sports event. Hyundai's sponsorship of FIFA makes it a focal point for protestors, who aim to highlight the connection between global sponsorships and local violence in Michoacán.
What implications does this have for investors? Ternium's share trading on the New York Stock Exchange means that markets cannot overlook the issues surrounding its operations. The company’s admissions of existing security risks pose potential operational and legal risks, which investors should seriously consider before engaging with the firm. Understanding the graduation of risk from community actions to corporate accountability is important for making informed investment decisions.