ArcelorMittal to Further Increase Long Products Capacity in Brazil
08/08/2008 - ArcelorMittal announces plans to further expand its long carbon steel operations in Brazil with new investments of US$1.6 billion, in addition to its announced US$1.2 billion investments to expand the Monlevade plant in Minas Gerais.
ArcelorMittal has announced plans to further expand its long carbon steel operations in Brazil with new investments of US$1.6 billion.
The new investments—the location of which has yet to be announced—will feature:
- Two new blast furnaces with a total capacity of 400,000 tonnes/year
- Two electric arc furnaces, one with a capacity of 1.2 million tonnes/year, and a second with a capacity of 800,000 tonnes/year
- One ladle furnace
- Two new continuous casters
- A 520,000 tonnes/year rebar mill
- A 500,000 tonnes/year merchant bar quality/special bar quality mill to produce special bars for the automotive industry
- A 650,000 tonnes/year structural mill for the production of medium/heavy structural sections
According to ArcelorMittal, the newest investments will expand its crude steel production capacity in Brazil’s long carbon sector by an additional 2.6 million tonnes, boosting its current 3.9 million tonnes/year production capacity to a new level of 6.5 million tonnes/year.
All facilities will be projected and installed with updated, environmentally friendly, energy-efficient technologies and equipment. The company said it would announce the location for the new investments after the conclusion of feasibility studies, which are presently underway.
The newly announced investments are in addition to the company’s previously announced US$1.2 billion investments to expand the Monlevade plant in Minas Gerais. Construction has commenced on the Monlevade plant’s capacity expansion, which features the installation of a 4 million tonnes/year sinter plant, a 1.5 million tonnes/year blast furnace, and simultaneous BOF Blowing. A new 1.2 million tonnes/year continuous caster will also be installed, as well as a new 500,000 tonnes/year wire rod mill.
ArcelorMittal anticipates that the capacity expansion will result in the creation of 400 additional direct jobs at Monlevade, which currently has 1200 employees.
“Our growth plans at Monlevade along with this additional investment of US$1.6 billion is an integral part of the investment program for our Brazilian operations, focusing on all the main long product lines,” commented Gonzalo Urquijo, Member of ArcelorMittal’s Group Management Board responsible for Long Products. “The increase in production capacity, particularly in the production of wire rod, bars and rebars as well as structural sections, recognizes the important growth potential of the domestic market and our commitment to investing in Brazil.”
Both the Monlevade expansion project and the newly announced investments are expected to be completed within 30 months.
