Steel galvanizing and annealing plant capacity increased to 2.2 million from 1.6 million tonnes
11/14/2024
With an investment of R$2 billion, ArcelorMittal inaugurated the expansion of its Vega facility in São Francisco do Sul, Santa Catarina, on Wednesday (12). The new unit will produce Magnelis, a corrosion-resistant material developed by the company, marking the first time this product will be manufactured outside of Europe. Magnelis is ideal for applications requiring high durability and low maintenance, such as solar panel structures and vineyard posts.
The new continuous galvanizing and annealing line has increased the plant’s annual production capacity from 1.6 million tonnes to 2.2 million tonnes. Jorge Adelino, vice president of operations for ArcelorMittal Flat Steel in Latin America, noted that this is the largest private sector investment in Santa Catarina.
ArcelorMittal produces 42% of Brazil’s flat and long steel, and its Brazilian operations account for 25% of the group’s EBITDA. Opened in 2003, the expanded facility will broaden its product range to support the automotive market, with new galvanized steel lines and high-strength steel coils.
Lakshmi Mittal, ArcelorMittal’s chairman and CEO, visited Brazil for the first time in eight years to inaugurate the unit. He highlighted that these investments were made despite challenges from high steel import volumes. “New investments in Brazil proceeded despite unfair competition from imported products that hinder opportunities for growth,” he said.
The group’s strategic plan allocates R$25 billion in Brazil from 2022 to 2028, covering expansion, modernization, acquisitions, and renewable energy initiatives. During a meeting with President Lula in Brasília on Tuesday, Mr. Mittal noted the federal government’s openness to dialogue. “The government understands and values our industry’s role in the country’s economic growth,” he added. President Lula shared photos of the meeting on social media, stating, “There is now confidence in foreign investment and industrial growth in Brazil.”
Eduardo Zanotti, ArcelorMittal’s vice president of flat steel sales, expressed concern over import volumes. “Despite the government’s tariff-quota measure, imports have not decreased. Predatory imports are troubling the industry,” he said. Mr. Zanotti also commented on the possible impact of policies under President-elect Donald Trump in the United States, expecting that stricter measures might redirect Chinese steel to other countries. “The Brazilian government understands the need to monitor imports. Many countries are ramping up protections for their local industries,” he added. While the primary focus of the expansion is on the domestic market, exports remain a possibility.
The reporter’s travel costs were covered by ArcelorMittal.
By Kariny Leal — São Francisco do Sul
Source: Valor International