Brazilian steelmaker ArcelorMittal Brazil announced on Monday it will invest $330 million to resume the expansion of its Vega facility, located in the city of Sao Francisco do Sul, in the state of Santa Catarina.
According to the company, the investment will increase Vega’s existing 1.6 million mt/year capacity by an additional 700,000 mt/year, which should be completed by 2021.
The resumed expansion includes a new continuous annealing line as well as the steelmaker’s third galvanizing facility. The company also said it may add a further 100,000 mt/year organic coating line capacity to serve the construction and appliance segments, thus increasing Vega’s capacity to up to 800,000 mt/year.
ArcelorMittal Brazil said the project aims to strengthen its position in the “fast growing automotive and industry markets through Advanced High Strength Steel products upon completion.”
The Vega facility expansion had been “on hold” in the past few years due to bearish expectations for Brazil’s steel industry.