Steel producer consolidates leadership in the country

The steel industry has proven to be extremely relevant to the Brazilian economy, providing raw materials for important infrastructure projects and sectors such as the civil construction, machinery and equipment and automotive industries, among others.

With 44 million tons of operational steel capacity in 21 steel plants, Brazil is the ninth largest global producer and the first in Latin America, according to the Global Energy Monitor.

World leader and largest steel producer in the country, ArcelorMittal has been implementing the largest investment program in the sector in Brazil, worth approximately R$25 billion, to expand its steel and iron ore production units, in addition to acquisitions and renewable energy projects.

The initiative reinforces the company’s belief in the country’s growth potential and the Group’s confidence in the Brazilian operation, both due to its high performance and efficiency.

Vega Unit Expansion

Responsible for 42% of national steel production and present in eight states with industrial units, ArcelorMittal also has the largest distribution network in the country.

There are around 20 thousand employees working with the purpose of producing “smart steels for people and the planet”.

In continuous growth, the company recently inaugurated expansion works on its Vega Unitin São Francisco do Sul, Santa Catarina, which required investments of R$2 billion made since 2021.

The CMC Project (Cold Mill Complex) involved the implementation of a new galvanizing and continuous steel annealing line, which increased the unit’s installed capacity from 1.6 million tons to 2.2 million tons per year. The project also expanded the product portfolio in the coated and cold-rolled flat steel segment, with high added value.

The expansion of the Unit in Santa Catarina is one of the most significant projects within the set of investments that ArcelorMittal has been carrying out in Brazil between 2022 and 2028, which total around R$25 billion between expansions, modernizations, acquisitions and renewable energy. This project also places the Santa Catarina plant among the most modern in the country and the world in flat steel processing technologies for special applications.

“This expansion project reflects the Group’s strategic decision to expand production in the country, develop technological and competitive steels and add value to our portfolio”, highlights Jorge Oliveira, CEO of ArcelorMittal Aços Planos América Latina.

The expansion represented the opening of 350 new permanent job vacancies in Vega. Currently, the Unit maintains 1,300 direct jobs, including its own employees and employees of companies operating in its industrial condominium.

Growth and modernization

The investment program carried out by ArcelorMittal will increase the company’s market share by increasing capacity and producing new high-value-added steels for domestic consumption and export.

The acquisition of the Pecém Unit for R$11.2 billion, completed in March 2023, proved to be strategic and successful. Last year, the giant slab producer reached its production record of three million tons produced, logistically integrated with a high-performance port to supply both the company’s other production units around the world and internal customers.

In addition to these, expansion projects are underway at the Barra Mansa Unit (RJ), where a whole new line will be implemented based on improvements in the steelworks and new rolling mills, at the Sabará unit (MG) and the Serra Azul Mine. The Monlevade Unit had its rolling capacity doubled with the installation of a new rolling mill, which came into operation in January 2022, in line with ArcelorMittal’s strategy of manufacturing products with higher added value.

Towards decarbonization

A pioneer in the sector by establishing the global goal of becoming carbon neutral by 2050 (with the intermediate step being a 25% reduction in emissions by 2030), ArcelorMittal is investing R$5.8 billion in three renewable energy projects. A partnership was signed with Casa dos Ventos for the construction of the Babilônia Centro Wind Complex, in the municipality of Várzea Nova, in Bahia, which will have a production capacity of 553 MW to supply approximately 40% of the consumption of the company’s units in the region with clean energy. country, with planned investments of R$4.2 billion.

Two other contracts were signed this year with Casa dos Ventos and Atlas Renewable for the installation of solar energy generation plants in Brazil. The investments are aligned with the objectives of self-sufficiency in renewable electrical energy for its industrial units and decarbonization of operations in the country.

The new contracts add up to R$1.6 billion in investments. The two plants have a generation capacity of 113 average MW/year, which will represent 14% of the current electricity consumption of ArcelorMittal units in Brazil.

“ArcelorMittal understands that a low-carbon global economy and mitigating the impacts of climate change are fundamental to a sustainable future, with the energy transition being a fundamental step within our decarbonization strategy. In addition to ensuring the supply of industrial plants with their own source of renewable energy, the investments aim to diversify the energy matrix, reduce operational costs and increase our competitiveness”, says Jefferson De Paula, president of ArcelorMittal Brasil and CEO ArcelorMittal Aços Longs and Mining LATAM.

Leading role in innovation

The company has also been investing in innovation and technology – pillars of the company’s strategic planning, seeking to guarantee not only results in the short term, but also the sustainability of the business in the medium and long term.

The strategy is implemented through a portfolio of innovation initiatives focused on productivity gains, cost reduction, performance improvement, safety improvement and environmental efficiency in current processes, at the same time as working on the development of new products and solutions in markets adjacent to those in which we operate and in markets where we do not yet operate.

A pioneer, ArcelorMittal was the first in the sector in the world to create an open innovation laboratory, Açolab. The hub, launched in 2018, has already made more than 25 thousand connections between startups, universities and other research and innovation centers.

Through a co-creation approach using agile concepts and methodologies and encouraging people’s innovative DNA, Açolab has already supported and structured the development of new products, processes, services and business models for the company.

One of the lab’s offshoots is Açolab Ventures, a R$110 million Corporate Venture Capital (CVC) fund aimed at startups, to propose solutions in strategic areas. Conceived in 2021, it has already made contributions of R$40 million, of which R$35 million in six startups from different segments.

Another relevant initiative in the area is iNO.VC, the Digital Transformation Program, with the premise of accelerating the company’s digital transformation through the integration of employees, startups, universities, innovation hubs and other partners. In just over five years of existence, the laboratory has had more than 370 projects registered in its portfolio – such as the first autonomous minibus prototype in Latin America –, with a 30% conversion rate. Accumulated earnings exceed US$80 million.

Innovation is also driven through ArcelorMittal Sistemas, the Group’s technology company, which develops IT solutions for all Group units in Brazil and other countries, focusing on strategic investments to foster digital transformation and promote disruptive changes in the business model. Its portfolio of services includes cybersecurity, cloud solutions, SAP platforms and project implementation – among them, the Center of Excellence in Analytics, for practical research in artificial intelligence, robotics and process automation.

Research and development

The ArcelorMittal Group also maintains 14 Research and Development (R&D) Center units spread across the world, with more than 1,700 researchers fostering innovative partnerships with the private sector and local public authorities.

In Brazil, the company’s R&D Center unit is located at the Tubarão plant (ES) and meets business demands across three development themes: products, processes and applications. Research is dedicated to developing more effective processes and expanding customer service and technical assistance, with the aim of promoting the advancement of new applications for various sectors, including: automotive, machinery and equipment, energy, construction and household appliances. .

Thanks to its solid trajectory, ArcelorMittal was elected the company that most promotes open innovation in Brazil, winning the 100 Open Corps Award.

This content was originally published in Steel producer consolidates leadership in the country on the CNN Brasil website.

Source: CNN Brasil