ArcelorMittal has started the production of high-resistance steel in the city of Sao Francisco do Sul, in the southern state of Santa Catarina, following a BRL 15 million investment, according to media reports.
According to the company, it expects to produce 100,000 mt/year of high-resistance steel by 2016 at its Vega plant in Sao Francisco do Sul. The mill produces galvanized and cold rolled steels, which are destined to meet the demand of the nation’s automotive industry.
The company’s decision to locally produce the high-resistance steel came from the Brazilian domestic market needing to follow global trends, it said. Another factor that influenced the company’s decision to start a new production line was the nation’s necessity in complying with the requirements of the Inovar-Auto program, a stimulus package for the nation’s struggling automotive industry.