Brazilian integrated steelmaker Usiminas has signed a memorandum of understanding (MoU) with the Minas Gerais state government in southeastern Brazil, committing to invest Reais 19.1 billion ($8.67 billion) in the state over the next five years.
Accordingly, Usiminas's main undertaking in the state is the construction of a slab plant with an annual 5 million mt capacity in Santana do Paraiso city, where the Minas Gerais government will also invest Reais 62.5 million ($27.2 million) in logistics infrastructure. The company has not yet disclosed the date when the construction will begin.
In addition, Usiminas plans to expand production at its Ipatinga plant where the company is headquartered. Following expansion over five years, the Ipatinga plant is expected to produce an additional 500,000 mt of heavy plates, 150,000 mt of hot rolled coils, 220,000 mt of cold rolled coils and 550,000 mt of galvanized coils per annum.
Meanwhile, Usiminas also plans to increase capacity at its Itatiaiucu iron ore mine complex in two phases to an annual 29 million mt from the current 6 million mt.