The world's number one steelmaker ArcelorMittal has announced the acquisition of a 50 percent share in Gonvarri Brasil to form a steel service center joint venture.
Upon completion of the acquisition in question, ArcelorMittal plans to build a strong presence in the Brazilian flat steel downstream segment under the leadership of its Tubarao and Vega do Sul plants.
Gonzalo Urquijo, senior executive vice president and member of the group management board in charge of long products and of ArcelorMittal Steel Solutions and Services, said that with this joint venture Gonvarri and ArcelorMittal will together become a major player in the Brazilian steel downstream market.
Both of the companies are expecting significant growth in the coming years. ArcelorMittal and Gonvarri have been partners in a common facility in Senica, Slovakia since 2007.
Gonvarri Brasil is one of the major companies involved in steel processing in Brazil. The company has an annual steel processing capacity of 1.3 million metric tons.