Japanese steelmaker Nippon Steel Corp.'s Brazilian affiliate, Usina Siderurgica de Minas Gerais S.A. (Usiminas) has announced its intention to accelerate its expansion plans by investing $14.1 billion through 2012 to increase steel and iron ore production and to modernize and upgrade its plants. Previously, the company had planned to invest $9.9 billion through 2015.
According to its revised investment plans, Usiminas is to invest $5.7 billion for the construction of its third mill with a production capacity of five million mt of steel per year in Santana do Paraiso, Minas Gerais state. This new slab mill is to be operational by the first quarter of 2011 at half capacity, reaching full production by 2012. About 60 percent of the new mill's output will be exported, while the remainder is to be sold on the domestic market.
Moreover, Usiminas will invest about $2.4 billion in the modernization of its Cubatão-based José Bonifácio steel mill in order to increase its production capacity to three million mt of steel per year.
The company also plans to raise its current iron ore production of five million mt per year up to 29 million mt by 2013. Currently the company is studying the development of the iron ore reserves of its Serra Azul-located mining company J.Mendes, and a possible location for a planned iron ore pellets plant. The total value of the investment is estimated at about $3.5 billion.
In addition, in order to expand its plate and hot rolled production capacities, respectively to 500,000 mt and 150,000 mt per year, Usiminas is to invest about $1.2 billion. In Ipatinga, the company is also building a new 550,000 mt per year galvanized products line and a new 750,000 mt per year coal facility, scheduled to be ready in Q1 of 2011 and Q1 of 2010, respectively.
Other investments included in the expansion plan are aimed at thermoelectrical self-sufficiency.