Brazil specialty steel producer, Villares Metals, a subsidiary of the voestalpine AG, expects to invest BRL 50 million ($12.3 million) at its plant in the city of Sumare, in the state of Sao Paulo, as it looks to expand its operations.
Out of the total BRL 50 million investment expected for the next few years, about BRL 20 million will be spent at the company’s new raw materials area, which will be used to produce specialty steel for the tooling, oil and gas and the metal-mechanical industries.
The company said the start-up of the new facility is only expected for April 2016.
Villares Metals reported a BRL 10.9 million net profit in the fourth quarter (Q4) of the 2014 fiscal year.
The company’s profit declined 12.7 percent in Q4 year-on-year, impacted by higher costs and elevated financial expenses. Villares Metal registered a BRL 744.1 million net revenue in Q4, 10.5 percent up year-on-year from BRL 659.2 million.
The company’s gross revenue was BRL 170.7 million, 1.3 percent up year-on-year, it reported.