Brazil’s Metallurgy Giant Usiminas Ships Overseas 33% of Its Production

The Usiminas metallurgy group turned 33% of its 2006 steel plate and sheet production to the foreign market, according to the marketing director for the company, Sérgio Leite.

The main markets served by the company, which is Latin America’s largest metallurgic complex for steel plate production, are the United States, Mexico, Germany, Canada, Thailand, India, Argentina, Spain, Chile and Colombia.

In the Middle East, the company has exported directly to Morocco, Iran and Pakistan. Of the three, only Morocco is an Arab country. "Usiminas/Cosipa follows closely the market opportunities in every region of the world, but our competitive advantages are more evident in the Americas, which can be observed from the share of Nafta and South American countries in our total exports," Leite told ANBA via email.

Nevertheless, he stressed that the company is present in the Arab world in an indirect manner, through Brazilian products that use steel as their raw material, especially pipes for construction of gas and oil pipelines, and vehicles.

For the sake of illustration, the group produced 6.6 million tons of raw steel during the first nine months this year. Overall, according to the Iron and Steel Sector Association (IBS), Brazil produced 22.8 million tons in the period.

The company produced 5.9 million tons of steel plates. Total sales, including domestic and foreign market sales, amounted to 6 million tons up until September, 2 million tons of which were exported, 35% more than during the same period last year.

For next year, the company forecasts an 8% increase in demand for steel plates, mostly due to internal factors – such as high credit volumes in the country, interest rate reduction and stable inflation – which should encourage consumption. Increases are also expected in public and private investments in petroleum, natural gas, mining, highways, and metallurgy itself.

According to the group’s press office, Usiminas invested 365 million reais (US$ 169.2 million) in maintenance, technological updating and environmental protection equipment for its plants up until September this year. Until 2010, the group forecasts investments worth 4 billion reais (US$ 1.8 billion) in its business.

The conglomerate’s business has yielded revenues of 9.1 billion reais (US$ 4.2 billion) from January until September this year, and a net profit of 1.8 billion reais (US$ 834.4 billion). The Usiminas group controls or shares capital in 16 companies in the sectors of metallurgy, logistics, stamping, capital goods, distribution and services. These companies employ 15,000 people.

Among others, Usiminas controls Usina Siderúrgica Intendente Câmara, in the southeastern Brazilian state of Minas Gerais, and Companhia Siderúrgica Paulista (Cosipa).

The group is active in various sectors, such as construction of train wagons, through Usiminas Mecânica, and manufacturing of truck bodies, through Usiparts.

In partnership with the Argentine group Techint, Usiminas also participates in the Ternium group, which controls metallurgy companies in Argentina, Venezuela and Mexico.

These companies employ more than 18,000 people. Established as a state-owned company in the 1950s, Usiminas was privatized in the 1990s.

Anba – www.anba.com.br

Tags:

Ads

You May Also Like

Brazil Wants a Developing Country Heading the IMF

Reflecting its increased importance as en emerging country, Brazil is expected to push very ...

Paradise Guardians

Capão is a bird watcher’s paradise. Ocelot, puma and jaguar still roam freely. The ...

Chavez Will Be in Brazil for Venezuela’s Integration Ceremony into Mercosur

Hugo Chavez, the president of Venezuela, informed that he talked with Dilma Rousseff, the ...

Racism Can’t Be Banned by Decree, Brazil Finds Out

A recently completed study by the economist Marcelo Paixão, professor at the Federal University ...

Brazil’s Lula Urges World Leaders to Be Daring

Brazilian President Luiz Inácio Lula da Silva said today that the world has the ...

For One Week Brazilian City Becomes Lingerie Capital of the World

Around 20,000 people are expected at the 14th edition of the Brazilian Underwear Fashion ...

Brazil’s Lula Praises Palestinian Patience

Brazilian President Lula met this Monday, May 9, with the secretary general of the ...

Fouad El-Khoury, Lebanese ambassador to Brazil

Lebanese Ambassador Does Extensive Charity Work in Brazil

The Lebanese ambassador in Brazil, Fouad El-Khoury, is getting ready to publish a book ...

Bush receives Brazilian President Lula in Camp David

Brazil’s Lula Believes Agreement on World Trade Will Happen in a Few Days

Brazil and the United States expect that in the coming 30 days agreement on ...

Congonhas airport in São Paulo, Brazil

After Giving In to Blackmail Brazil Gets Tough With Air Controllers

The Brazilian government toughened its position in negotiations with air traffic controllers Tuesday, April ...