Belgo Bekaert, a joint venture (JV) between ArcelorMittal and the Bekaert Group in Brazil, will invest BRL 100 million ($19.2 million) by H2 2022 to expand two mills in Brazil.
The company said it will expand steel cord output at its Itaúna mill in Minas Gerais state, as well as its Sumare plant in São Paulo state. Belgo produces its steel cord product for the automotive industry. The steel cord product is a brass-coated steel wire used for radial tire reinforcement. Belgo claimed it is the only company in Latin America to produce steel cords.
The company said the $19.2 million investment covers the acquisition of a new product line, as well as new drawing machines and new equipment for finished steel products.
The company did not disclose what the new capacity will be after the expansion works are complete. The company’s CEO, Ricardo Garcia, said the expansion eyes the growing demand of the automotive sector.