The Brazilian arm of ArcelorMittal announced the postponement of a $500 million investment destined to double the production capacity of the João Monlevade steel plant, located in the southeastern state of Minas Gerais. The start-up of the new capacity was originally scheduled for late 2024; the investment is reportedly being delayed for two years.
Jefferson de Paula, president of ArcelorMittal Brasil, told local press that the decision derived from the need to review the technology of the equipment, which was acquired more than 10 years ago.
He mentioned that with the update of the technology, the cost of the project has increased to $800 million, a budget already approved by the board of the company.
The Monlevade plant will have its production capacity increased from 1.2 million mt per year to 2.1 million mt per year, with wire rod its most important line, including the product of the grade destined to produce the steel cord, a product used in the pneumatic tire industry.
The plant also produces wire rod destined to the production of other automotive items such as shock absorbers, springs and bolts.
