Arcelor to establish new plant in Brazil for auto industry

Arcelor to establish new plant in Brazil for auto industry

Reports from the industry reveal that world's largest steel group Arcelor is planning to establish a new plant in Brazil with a capacity of 1'400'000 tonnes where 400'000 tonnes of this amount will be galvanized steel sheet produced for the automotive industry. European company expects that this plan will cost $400 million. Meanwhile, Arcelor's subsidiary Vega do Sul, feedstock to be provided by Companhia Siderurgica de Tubaro (CST), will launch production next month which will annually supply 880'000 tons of pickled&oiled, cold rolled and galvanized steel to the automotive industry. Furthermore, company's other plans for Brazil is to increase its share in Brazilian flat steel producer CST up to 60% until 2006 with a total cost of $1 billion.