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ArcelorMittal to Double Capacity of Monlevade Plant in Brazil

12/03/2007 - ArcelorMittal will double the capacity of its integrated long-products Monlevade Plant located in Brazil with the addition of a second blast furnace.

ArcelorMittal has announced plans to double the capacity of its integrated long-products Monlevade Plant located in Brazil's Minas Gerais State.
 
Monlevade currently produces wire rod using one blast furnace, which was commissioned in 2000. A second blast furnace will now be added, adding one million tonnes of capacity.
 
"I am happy to be able to announce that over the next five years we will be investing approximately US$5billion in our Brazilian operations, including maintenance,” said Lakshmi Mittal, President and CEO of ArcelorMittal, during the recent inauguration of the expanded 7.5 million tonnes/year ArcelorMittal Tubarão, the Group's main flat carbon steel plant in Brazil.
 
Mittal said that the investments would includes such projects as the expansion of the Tubarão hot strip mill to four million tonnes/year and constructing a new hot dip galvanizing line in Vega do Sul. He added, “With its close proximity to raw materials, good quality iron ore, highly skilled workforce and attractive growth prospects, Brazil is a great place to make steel”.
 
Regarding Monlevade, Mittal added, “The decision to construct a new blast furnace in Monlevade is part of the Group's recently announced growth plan, which aims at increasing shipments by 20% by 2012 through organic growth alone. It was recently taken by the Group's Board of Directors, and Group Management Board is now set to implement it. Work on the ground will begin shortly”.
 
ArcelorMittal is the world's largest steel company, with 320,000 employees in more than 60 countries. The company leads a number of major global markets, including automotive, construction, household appliances and packaging, with leading R&D and technology, as well as sizeable captive supplies of raw materials and strong distribution networks. An industrial presence in 27 European, Asian, African and American countries exposes the company to key steel markets, from emerging to mature, positions it will be looking to develop in the high-growth Chinese and Indian markets.
 
ArcelorMittal’s key pro forma financials for 2006 show combined revenues of USD 88.6 billion, with a crude steel production of 118 million tonnes, representing around 10% of world steel output.