Brazilian steelmaker Usiminas is considering a possible deactivation of another continuous steel casting line at its Cubatão plant in southeastern São Paulo state after a net loss of USD 271M last year. This is part of the company’s strategy to reduce costs.
The Cubatão plant operates four continuous casting lines, which produce semi-finished steel such as slabs and plates, and one of them is currently disabled. According to CEO Julián Egurén “We are studying the second casting line deactivation in the short term. We currently operate a total of eight lines with maximum levels of productivity”.
The company’s main export markets are Argentina, Mexico and Colombia. It has exported 709,000t of steel slabs in 2012, representing a 191% increase from the 244,000t exported in 2011. However, the steelmaker estimates a 30% to 40% reduction in its steel slabs exports this year. Usiminas’ goal is to take advantage of its semi-finished products on its own plants, Commercial Director Sérgio Leite said.