ArcelorMittal Brazil will keep three expansion projects in Brazil “on hold,” according to the company’s Q4 2017 report released this week.
SteelOrbis has learned the company’s three “ongoing” expansion projects are located at its Vega do Sul, Juiz de Fora and Monlevade mills.
“On hold” projects refer to those in which construction has begun, excluding various projects that are under development, even if such projects have been placed on hold pending improved operating conditions, the company explained.
It said projects to increase 600,000 mt/year in HDG capacity and 700,000 mt/year in cold rolling capacity at its Vega do Sul mill are on hold.
The other two projects on hold are a 200,000 mt/year increase in melt shop capacity at its Juiz de Fora mill, and a growth of 1.2 million mt/year in crude steel capacity, and 2.3 million mt/year in sinter feed capacity at its Monlevade mill.
“Although the Monlevade wire rod expansion project and Juiz de Fora rebar expansion were completed in 2015, the Juiz de Fora melt shop project is currently on hold and is expected to be completed upon Brazil domestic market recovery,” the company said.
“The company does not expect to increase shipments until domestic demand improves,” it added.
The same projects were also “on hold” in Q4 2016.