Brazilian flats steelmaker Usiminas said last week it has increased its Capex spending forecast to repair its No. 3 blast furnace at its Ipatinga mill.
Usiminas first estimated it would spend BRL 1.2 billion ($224.4 million) to repair the blast furnace.
The flats producer said the increased depreciation of the Brazilian Real (BRL) over the US dollar (USD), higher service costs and the expansion of the project’s scope, is what led to a more expensive repair cost.
Usiminas increased the Capex spending forecast from BRL 1.2 billion ($224.4 million) in 2019 to BRL 1.8 billion ($347.5 million) late last week, according to a document filing at Brazilian securities exchange commission, CVM.
Usiminas said the investment will be finished by 2023, instead of 2022, as previously anticipated.
The No. 3 Ipatinga blast furnace will continue operating until mid-2022, when repair works will commence, it said.