Brazil to Invest US$ 13 Billion in 5 Years in Steel Production

The Brazilian steel industry plans to invest US$ 13 billion in the next five years so as to increase production. With these funds, the country steel production should grow from the 34 million to 50 million tons.

This statement was made by the new president of the Brazilian Steel Institute (Instituto Brasileiro de Siderurgia, IBS), Luí­s André Rico Vicente, who took office yesterday.


According to Vicente, this expansion does not include projects by Vale do Rio Doce, the largest mining company in Brazil, which may increase the country’s productive capacity as high as 60 million tons.


Vicente believes that this growth is more than enough to supply the domestic demand and cater to exports. According to figures supplied by the IBS, last year exports total led 11.9 million tons of steel, reaching a record value of US$ 5.3 billion, this represented 13.9% of the country trade surplus.


According to Vicente, there are forecasts for a 2.9% drop in exports this year, resulting in sales of 11.6 million tons in 2005.


With regard to the production of steel this year, the new president of the IBS stated that the forecast is for a 2% increase, from 32.6 million tons to 33.6 million tons.


For Vicente the good perspectives for the sector are due to the modernization of the industrial park, to cost reduction and improvement of product quality and managerial methods.


Among the investments that the Brazilian steel sector should receive is the construction of a flat steel factory in the northeastern Brazilian state of Pernambuco.


Russian metallurgy companies TMK and Commetpron have announced that they are willing to invest US$ 2 billion in the mill.


They intend to produce up to 3 million tons a year. Around 80% of the volume should be turned to export.


If the project works out, it would be the first of the kind by Russian companies in the Americas. The companies have already signed a protocol of intentions with the government of the state of Pernambuco.


ABr

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Dengues That Had Disappeared for Decades Are Making Comeback in Brazil

Brazil’s minister of Health, José Gomes Temporão, says there is a possibility that dengue ...

A Brazilian toast. Business requires social skills

Doing Business in Brazil Is First of All an Adventure

"So, what’s it like to do business in Brazil?" As a U.S. lawyer who ...

Downtown São Carlos in São Paulo, Brazil

Brazilian City Celebrates 150 Years of Arab Presence

São Carlos, a town in the interior of the southeastern Brazilian state of São ...

ILO to Educate Brazilians on Human Traffic

Informing the population about the problem of international human traffic is the goal of ...

Coping With Too Much Or Too Little Rain in Brazil

More than 48,000 Brazilian family farmers and their families affected by the 2003/2004 drought ...

Brazil’s Army Chief Calls His Men Warriors of Peace in Haiti

At a ceremony honoring general Urano Bacellar, the commander of the UN Stabilization Mission ...

Brazil’s Petrobras Raises US$ 30 Billion and Is Fully Financed Till 2013

Brazil's Petrobras Business Plan, announced in January for the 2009-2013 is already fully financed. ...

Father Vicenzo Ronchi, spiritual leader of Brazilian Catholic community in New York

How a New Priest and a Dying Woman Rallied New York’s Brazilian Community

Italian-born Father Vicenzo Ronchi is quite the character – he has a captivating personality, ...

TAM Adds Italy and NY Red-Eye Flight to Its International Routes

Brazilian airline TAM has received official authorization from ANAC (Agência Nacional de Aviação Civil), ...

WTO: Brazil Is Back to the Bargaining Table

The result of Wednesday’s, May 4, mini-ministerial meeting of the World Trade Organization (WTO) ...