The Brazilian arm of ArcelorMittal announced the temporary suspension of activities linked to the expansion of its João Monlevade plant, located in the southeastern state of Minas Gerais.
In a statement, the company said, “considering the macroeconomic scenario and market opportunities, the company is reviewing its investment plan and decided, for the time being, for the suspension of the works related to the expansion project of the Monlevade unit."
According to the company, the suspension is temporary and affects only the outsourced companies that are operating in the construction site.
The project dates from 2008 and has suffered several postponements, including one in August 2023, followed by a resumption of works announced earlier this year.
The expansion was expected to be concluded in 2024, with investments estimated at $500 million, to increase Monlevade’s production capacity from 1.2 to 2.2 million mt per year.
The Monlevade plant is the only unit in Brazil that produces a special wire rod grade destined to the production of steel cord, used by the pneumatic tire industry.