The world's largest steelmaker ArcelorMittal has announced its decision to double the capacity of its integrated long products Monlevade plant located in Brazil's Minas Gerais State.
The Monlevade plant produces wire rod and currently runs one blast furnace which went into operation in 2000. The expansion of the plant's capacity will be achieved by the construction of another blast furnace, adding over one million mt.
Delivering a speech at the inauguration of the expansion to 7.5 million mt annual production at ArcelorMittal Tubarão (the Group's main flat carbon steel plant in Brazil), Mr. Lakshmi Mittal, president and CEO of ArcelorMittal, said, "I am happy to be able to announce that over the next five years we will be investing approximately $5 billion in our Brazilian operations, including maintenance. This includes such projects as the expansion of the hot strip mill in Tubarão to four million mt per year and constructing a new hot dip galvanizing line in Vega do Sul. With its close proximity to raw materials, good quality iron ore, highly skilled workforce and attractive growth prospects, Brazil is a great place to make steel."
Regarding Monlevade, Mr. Mittal added that the decision to construct a new blast furnace in Monlevade is part of the Group's recently announced growth plan, which aims at increasing shipments by 20 percent by 2012 through organic growth alone.