A ArcelorMittal announced on Thursday (11) an investment of US$ 4.3 billion until 2024 to expand its production capacity of steels long and iron ore in Minas Gerais, betting on continuous growth in the country’s steel demand.
The company will expand the capacity of the João Monlevade steel plant from 1.2 million tons to 2.2 million tons per year, and increase the capacity of the Serra Azul mine, from 1.6 million to 4.5 million tons per year. .
“The organization believes in Brazil’s sustainable growth and increased demand for steel, especially in key sectors of the Brazilian economy, such as civil construction, automotive, machinery and equipment, and for iron ore, both in the domestic market and for export to both products,” ArcelorMittal said in a statement.
The company stated that the Monlevade mill is the only Brazilian manufacturer of steel for steel cords used in the manufacture of tires (steelcord).
The unit also produces special long steels for the manufacture of auto parts such as bars for shock absorbers, coil springs, fasteners, steel wool, cables and welds. With the start-up of the entire line, the mill will be one of the largest in the country for long steel, stated ArcelorMittal.
The investment comes at a time of crisis in the national automotive industry, for months facing difficulties with the supply of components such as semiconductors and tires generated by the disruption of logistical chains, in the wake of social isolation measures.
The Monlevade plant will receive a sintering process, a new blast furnace and the steelworks will be doubled. In addition, the Andrade mine, which supplies iron ore to the plant and is located 11 kilometers away, will increase production from 1.5 million to 3.5 million tons per year.
Reference: CNN Brasil
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