USIMINAS Announces Construction of Third Steel Plant in Brazil

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Researched by Industrial Info Resources (Sugar Land, Texas)--Usinas Siderurgicas de Minas Gerais (OTC:USNZY) (USIMINAS) (Belo Horizonte, Brazil) has recently announced investments of $5.7 billion in the construction of its third Brazilian steel plant, which is scheduled to start up in March 2009. The company is currently performing detailed engineering and expects to select a construction firm by early 2009. The unit will be located in the city of Santana do Paraiso, about 7 kilometers from another USIMINAS steel plant in Ipatinga, both in the state of Minas Gerais.

The new steel plant is expected to produce 5 million tons per year in two phases. In Phase I, scheduled to be completed in the first half of 2011, the plant capacity will reach 2.5 million tons per year. In Phase II, the plant is expected to reach its full capacity by 2012. The unit will specialize in the production of steel beams and will supply the other two existing USIMINAS rolling mill plants, located in the cities of Ipatinga and Cubatao.

The USIMINAS System is the biggest flat steel complex in South America. The new steel unit is part of a $14.1 billion investment project announced by the company that aims to increase production and modernize the existing units until 2012.

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