ID :
15346
Fri, 08/08/2008 - 18:02
Auther :
Shortlink :
http://m.oananews.org//node/15346
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ArcelorMittal to invest USD 1.6 bn in Brazil
London, Aug 8 (PTI) Global steel player ArcelorMittal Thursday said it would invest 1.6 billion dollars to enhance crude steel production capacity in Brazil.
The company would expand its crude steel production capacity to 6.5 million
tonnes in the long carbon sector in Brazil, from the current 3.9 million
tonnes, a statement from ArcelorMittal said.
The investment, which is in addition to the previously announced 1.2 billion
dollars capital inflow for the expansion of the Monlevade plant in Minas
Gerais, is expected to be completed within 30 months, the statement said.
"Our growth plans at Monlevade, along with this additional investment of USD
1.6 billion, is an integral part of the investment program for our Brazilian
operations, focusing on all the main long product lines," ArcelorMittal Group
Management Board member Gonzalo Urquijo said.
However, the world's largest steel maker would announce the final location for
these new investments after the conclusion of feasibility studies.
The new investment program would consist of construction of two new blast
furnaces, with a total capacity of four lakh tonnes per year, two electric arc
furnaces and others for the production of medium or heavy structural sections
for the automotive industry.
Further, the company has already commenced work to increase the capacity of the
Monlevade plant, which it expects to be completed within 30 months.
Besides, ArcelorMittal expects that the capacity expansion at its Monlevade
plant would help in creating direct job opportunities.
"As a result of the capacity expansion at Monlevade, 400 additional direct jobs
will be created at the plant which currently has 1,200 employees," the
statement added.
At the Monlevade plant, the company would install a sinter plant with a
capacity of four million tons per year, a blast furnace with a capacity of 1.5
million tonnes per year among others.
"The increase in production capacity, particularly in the production of wire
rod, bars and rebars as well as structural sections, recognises the important
growth potential of the domestic market and our commitment to investing in
Brazil," Urquijo added.
The company would expand its crude steel production capacity to 6.5 million
tonnes in the long carbon sector in Brazil, from the current 3.9 million
tonnes, a statement from ArcelorMittal said.
The investment, which is in addition to the previously announced 1.2 billion
dollars capital inflow for the expansion of the Monlevade plant in Minas
Gerais, is expected to be completed within 30 months, the statement said.
"Our growth plans at Monlevade, along with this additional investment of USD
1.6 billion, is an integral part of the investment program for our Brazilian
operations, focusing on all the main long product lines," ArcelorMittal Group
Management Board member Gonzalo Urquijo said.
However, the world's largest steel maker would announce the final location for
these new investments after the conclusion of feasibility studies.
The new investment program would consist of construction of two new blast
furnaces, with a total capacity of four lakh tonnes per year, two electric arc
furnaces and others for the production of medium or heavy structural sections
for the automotive industry.
Further, the company has already commenced work to increase the capacity of the
Monlevade plant, which it expects to be completed within 30 months.
Besides, ArcelorMittal expects that the capacity expansion at its Monlevade
plant would help in creating direct job opportunities.
"As a result of the capacity expansion at Monlevade, 400 additional direct jobs
will be created at the plant which currently has 1,200 employees," the
statement added.
At the Monlevade plant, the company would install a sinter plant with a
capacity of four million tons per year, a blast furnace with a capacity of 1.5
million tonnes per year among others.
"The increase in production capacity, particularly in the production of wire
rod, bars and rebars as well as structural sections, recognises the important
growth potential of the domestic market and our commitment to investing in
Brazil," Urquijo added.
