Luxembourg-based ArcelorMittal has decided to temporarily stop the $1.2 billion expansion of its integrated João Monlevade steel mill in the Minas Gerais state in Brazil as a reaction to weak market conditions. The upgrades at the Brazilian longs mill include a new sinter unit, a new blast furnace, a third rolling line and an overall increase in annual wire rod output to 2.3 million metric tons. If completed, the expansion would double the mill's current crude steelmaking capacity to 2.4 million tons per year.
The decision comes amid other slowdowns/shutdowns at ArcelorMittal's global steelmaking facilities. The company has permanently closed its liquid phase steel production location in Liege, Belgium, temporarily halted production at a mill in Poland, idled a blast furnace in Germany and France, an electric arc furnace and two rolling mills in Luxembourg and an electric arc furnace in Spain. Anemic European steel demand drove ArcelorMittal's decision-making process.
ArcelorMittal also pulled out of the joint venture with Peabody Energy immediately following ArcelorMittal's and Peabody Energy's acquisition of the majority stake in metallurgical coal mining company Macarthur Coal.