ArcelorMittal Brazil is set to resume the expansion project at ArcelorMittal Vega, flat steel cold rolling, pickling, and galvanising unit located in São Francisco do Sul (state of Santa Catarina).
The investment will see the construction of a new continuous annealing line and a third galvanisation line for the production of cold rolled and galvanised products. The capacity of the unit is set to increase by 700,000 tonnes to a total of 2.1 million tonnes per year. The production is expected to begin in 2021.
The project will increase production for the automotive, construction and home appliances sectors at the Vega unit, allowing the company to meet the market expectations and provide high strength and quality steel products.
This investment is expected to sustain ArcelorMittalâs growth strategy in Brazil and Latin America.
Vegaâs expansion project was on hold since 2011 due to the global crisis which started in 2009 and the Brazilian economic recession and reduction of the domestic market for vehicles. Today, 50% of the production at ArcelorMittal Vega is aimed at the automotive market. âWe currently have a market to sell Vegaâs products above the existing capacity. We could be selling moreâ?, Benjamin Baptista Filho concludes.