Brazilian flats steelmaker Usiminas is considering investing in a new galvanizing line if the country’s economy confirms its expected growth.
In a conference call with analysts, Usiminas CEO Sergio Leite did not specify which galvanizing line or product it would produce if the positive scenario is confirmed.
The executive said Usiminas has already made preliminary studies for a potential investment in a new galvanizing line.
Usiminas currently has an installed HDG capacity of 900,000 mt/year, with an installed capacity for electro-galvanized (EG) steel products of 360,000 mt/year.
Usiminas is currently operating its HDG production line close to full capacity. On the other hand, the company’s EG product line is highly idled, the executive said.
“We’re prepared to meet [a growing demand of galvanized steel products from] the automotive sector, which is our priority, even if the segment grows 50 percent in the next few years,” Leite said.
The CEO said that in order to meet a potential demand for galvanized steel products from automakers, Usiminas would reduce exports of the product, diminish focus on non-automotive clients, while increasing its installed capacity for EG products to then raise HDG capacity as well.
Leite did not provide a timeline for the potential investment.