Brazil steelmaker Usiminas said on Thursday it decided to temporarily halt production at its steel shop, sintering and coking units, which are located at its Cubatao mill, in the city of same name in the state of Sao Paulo. The company also said it will idle the blast furnaces at the plant.
The steelmaker, which has seen domestic demand for steel decline, said the idling process will take place gradually.
“Such a adjustment aims to reposition Usiminas into a new level of scale and competitiveness before an economic context of progressive deterioration of the steel market,” the company said in a filing at the nation’s securities and exchange commission, CVM.
As a result of the company’s decision, the Cubatao mill will stop producing slab; however, both its hot and cold rolling lines will remain active, “as well as the activities related to its port terminal,” the company noted.
The company’s heavy plates rolling mill will remain temporarily suspended as well, Usiminas said.