ArcelorMittal increased its investments in Brazil by 6 percent in the first quarter of the year, according to media reports on Monday.
The company’s Capex in the Brazil segment, which includes flat and long steel production in the country, as well as other assets in South and Central America, accounted for 19 percent of the company’s total investments globally in Q1, according to media reports. Arcelor’s total Capex in Q1 reached $745 million, 14.8 percent down year-on-year from $875 million.
The company’s biggest project in Brazil is the expansion of the Joao Monlevade mill in the central region of Minas Gerais. The project is expected to be completed in two phases with the first phase focused mainly on downstream facilities. Start-up is expected in 2015, according to company’s information.
With BRL 352 million investments, the first phase of the project includes the installation of a third laminator, which will have a 1.1 million annual capacity. The laminator installation is expected to be completed this year, reports said.
The second phase of the initiative includes the construction of a new sinter plant and a new blast furnace. Additionally, ArcelorMittal could double production at its melt shop to 2.4 million mt of billet per year.