Belgo-Mineira Bekaert Artefatos de Arame (BMB), a joint venture (JV) between ArcelorMittal and the Bekaert Group in Brazil, said this week it will invest $33 million to expand its Itauna steel tire cord plant, located in the city of same name in the state of Minas Gerais, Brazil.
Bekaert and ArcelorMittal Brazil operate 10 plants in Brazil through BMB and Belgo Bekaert Arames (BBA). ArcelorMittal has a controlling stake of 55 percent in BBA and 55.5 percent in BMB. The two companies said in an emailed statement to SteelOrbis the investment will be made in three years and should generate 200 direct and indirect jobs.
BMB expects the investment will help it increase steel tire cord output by 35 percent. It did not disclose production figures for its Itaúna plant.
Bekaert said the investments aim to “further strengthen their leading position in the Latin American market and to drive manufacturing excellence in the rubber reinforcement activities.”
Under the terms of the proposed investment, BMB will install “half product capacity” and become a “fully integrated manufacturing entity.” The investment includes construction and infrastructure works and the installation of machines designed and assembled by Bekaert Engineering.