Luxembourg-headquartered steelmaker ArcelorMittal is considering an investment of approximately BRL 5 billion ($961 million) to expand its Pecém steel mill in Ceará, Brazil, with a final investment decision expected by the end of 2026, according to media reports. The proposed project would add a new hot rolled coil production line with an annual capacity of 1.5 million mt.
The project is part of ArcelorMittal's plans to expand its production of higher-value steel products in Brazil. The company had previously confirmed that the Pecém facility was among the sites where it was evaluating downstream expansion opportunities, including the development of a new hot rolled coil line.
Final investment decision expected by year-end
According to Jorge Oliveira, ArcelorMittal's chief operating officer in Brazil, studies for the Pecém expansion are ongoing and a final investment decision is expected by the end of the year. The investment would depend partly on conditions in Brazil's domestic steel market, including the level of import penetration.
The Pecém plant currently focuses on slab production. The proposed rolling line would enable part of these slabs to be processed into hot rolled coil at the site, increasing the share of higher-value finished steel products in the company's Brazilian portfolio.
