Companhia Siderurgica do Pecem (CSP), the Brazilian slab producer recently acquired by ArcelorMittal, is expected to increase its production and export its product to Europe, according to Jorge Oliveira, CEO of the flat steel products division of the company for South America.
Oliveira was quoted by the local press as saying that, in a first stage, the plant will increase its production pace, from the current 2.85 million mt per year, to its nameplate capacity of 3.0 million mt per year, which was not achieved since its foundation in 2008.
He added that ArcelorMittal in Europe will represent an additional opportunity for the destination of the Brazilian slab, currently limited to the domestic market, to the US and Mexico.
Oliveira added that during 2023, the company will evaluate in more details the alternatives for the verticalization of its production, as he believes that the verticalization of Pecem makes sense for the next years, despite the uncertainties of the macroeconomic scenario that could affect the consumption of steel in Brazil.
He mentioned that synergies estimated at $50 million per year, identified during the studies developed for the acquisition, are of possible achievement in the near term.
With the acquisition of Pecem, ArcelorMittal has increased its production capacity of flat steel products in Brazil to 10.5 million mt per year. If longs are included, the capacity reached 15.5 million mt per year.
