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Usiminas Revises Investment Plan in Brazil
11/22/2010 - Usiminas announced that its Board of Directors recently decided to cancel the project for construction of a new plant in the city of Santana do Paraíso, state of Minas Gerais. The Board also approved the investments of Mineracao Usiminas S.A. in the amount of R$550 million, related to the first stage of the Production Capacity Expansion Plan.
Usiminas has informed its shareholders and the general public that the Board of Directors recently decided to cancel the project for construction of a new plant in the city of Santana do Paraíso, state of Minas Gerais, taking into account its low attractiveness due to current market conditions.
The Board has chosen to conduct more studies to increase the competitiveness of the industrial steel operations in order to better position the company to capture opportunities in the Brazilian steel market by:
- Optimization of the Ipatinga and Cubatao Plants, aiming for cost reduction, quality improvement, and balancing the capacity between steel production and rolled products. The two plants are currently in expansion.
- Improving energy efficiency through a revision of the energy balance, including better use of the gases generated in the productive process.
The Board also approved the investments of Mineracao Usiminas S.A., a company controlled by Usiminas, in the amount of R$550 million, related to the first stage of the Production Capacity Expansion Plan. The expansion will allow Mineracao Usiminas S.A. to reach, on the second half of 2012, 12 million tonnes per year, compared to the current 7 million tonnes.
Usiminas is an alliance partner of Nippon Steel Corp. in South America and an equity-method-applicable affiliate company of Nippon Steel, which says it will continue to support Usiminas with the goal of further increasing the corporate value of both companies.
Major investments at Ipatinga Steel Works include:
- Construction of new No.3 Coke Plant (750,000 tonnes per year), which started operation in 3Q 2010
- Revamping of No.2 Coke Plant (1,000,000 tonnes per year), with start-up of third battery in 2Q 2012 and fourth battery in 4Q 2013
- Construction of new No.3 RH, with start-up in 3Q 2011
- High-grade plate manufacturing equipment (CLC), which finished implementation in 3Q 2010
- Expansion of Plate Mill capacity by 500,000 tonnes per year, with start-up in 4Q 2012
- Construction of new No.2 CGL of Unigal (550,000 tonnes per year); start-up in 1Q 2011.
Investments at Cubatao Steel Works include:
- Construction of new No.2 Hot Strip Mill (1st phase: 2,300,000 tonnes per year); start-up in 3Q 2011
- Construction of new No.3 Pickling Line (1,000,000 tonnes per year), with start-up in 4Q 2011.
