Brazil’s Steelmaker CSN Goes Full Steam Ahead Shelling Out US$ 9 Billion

Brazil's steelmaker CSN CSN (Companhia Siderúrgica Nacional), Brazil's second largest steelmaker, just behind Vale, this week confirmed last September's pledge to invest US$ 9 billion over the next four years, revealing plans to plow US$ 5.25 billion into mining, steel and cement projects in the southeastern state of Minas Gerais over the next six years.

The company's president, Benjamin Steinbruch, on Tuesday, December 18, signed a protocol with the government of Minas Gerais, which includes expansion of the capacity of CSN's Casa de Pedra iron ore mine from 16 million tons/year to 65 million tons/year by 2011. The company will also build a new 6 million tons/year pellet plant, a 4.5 million tons/year steel mill, and two cement plants.

"These funds," declared Steinbruch, "consolidate the cycle of investments previously announced by the company and underline our commitment to the creation of shareholder value and the generation of wealth and jobs in Minas Gerais and in Brazil."

In September, CSN announced plans to construct a US$ 2.9 billion, 4.5-million ton steel slab plant near Casa de Pedra. All the iron ore CSN now uses comes from Casa de Pedra, with half mainly consumed in the domestic market.

Of the total capital expenditures (capex) investments, the lion's share will go to projects in the Congonhas municipality with Arcos City expected to get the cement plants while Belo Horizonte, the capital of Minas Gerais, will become a steel beneficiation and distribution center for CSN.

The investments are anticipated to generate more than 10,000 jobs, according to a CSN news release. Local workers, the company says, will be given priority for jobs, with full training in manufacturing and technological development being provided.

The state-owned company was created in 1941, but went private in 1993 and 1994 after the Brazilian government sold an 81% interest in CSN. The company primarily operates as an integrated steel producer.

Earlier this year CSN launched an unsuccessful bid for the Anglo-Dutch steel producer Corus. However, India's Tata Steel successfully outbid CSN for Corus. Brazil is the eighth largest steel producer in the world.

Mercopress/Bzz

Tags:

You May Also Like

Brazil: 1001 Nights Gets First Translation from Arabic to Portuguese

“O my sister, relate to us a story to beguile the waking hour of ...

Argentina Is Brazil’s Second Best Buyer and Seller

Brazil’s Secretary of Foreign Trade of the Ministry of Development, Industry, and Foreign Trade, ...

The Idea of a FTAA with the US and Without Cuba is Dead, Says Brazil’s Lula

Brazilian President Luiz Inácio Lula da Silva stressed Friday, July 21, in Argentina, the ...

Brazil’s Trade Surplus Reaches US$ 569 Million, 31% Lower than Last Year’s

Brazil’s commercial surplus in the first three weeks of February totaled US$ 735 million, ...

Brazil and Colombia Unite Against Drug Dealers and FARC Terrorists

Brazil and Colombia agreed on a cooperation and defense agreement aimed at controlling the ...

Arab Ambassadors Meet in Brazil to Discuss Palestine

The ambassadors for Arab countries based in BrasÀ­lia, the capital city of Brazil, met ...

Brazil’s Press Freedom Is Threatened from All Sides: Gangs, Army and Courts

In Latin America’s largest country, journalists, legislators, courts, street gangs, and political factions are ...

Brazilian Imports Jump 26.9% While Exports Grow a Modest 2.6%

Brazilian exports grew only 2.6% in August, while imports rose 26.9%. Brazil sold the ...

Brazil Joins Colombia to Fight Drugs

Brazil’s President Luiz Inácio Lula da Silva said that he considers yesterday summit in ...

Assuncií³n Accuses Brazil of Triple Taxing Paraguayan Goods

Mercosur Foreign Affairs and Finance ministers met Thursday, June 28, in Paraguay, ahead of ...