The globe's largest steelmaker, Luxembourg-based ArcelorMittal, plans to invest US$1.6bn in its long carbon steel operations in Brazil to expand production capacity by 2.6Mt/y to 6.5Mt/y within 30 months, the company reported.

ArcelorMittal noted that the investments are in addition to the US$1.2bn previously allocated to the expansion of the Monlevade plant in Brazil's Minas Gerais state, which will add another 1.2Mt/y.

Works include two new blast furnaces with a total capacity of 400,000t/y, two electric arc furnaces with capacity of 1.2Mt/y and 800,000t/y, a ladle furnace, two continuous casters and a 520,000t/y rebar mill, the company said in a statement.

ArcelorMittal will also build a 500,000t/y merchant bar quality-special bar quality mill to produce special bars for the automotive industry and a 650,000t/y structural mill for the production of medium-heavy structural sections.

The locations for the new facilities will be announced after the conclusion of feasibility studies which are underway, the company said.

Monlevade

Expansion works to double Monlevade's capacity to 2.4Mt/y have started and are also expected to be completed within 30 months, ArcelorMittal said. Works there include the installation of a new 4Mt/y sinter plant, a 1.5Mt/y blast furnace, a simultaneous basic oxygen furnace, a 1.2Mt/y continuous caster and a 500,000t/y wire rod mill.

"Our growth plans at Monlevade along with this additional investment of US$1.6bn are an integral part of the investment program for our Brazilian operations, focusing on all the main long product lines," said Gonzalo Urquijo, a member of ArcelorMittal's management board.

"The increase in production capacity, particularly in the production of wire rod, bars and rebar as well as structural sections, recognizes the important growth potential of the domestic market and our commitment to investing in Brazil."

ArcelorMittal's operations in Latin America include flat steelmaker Tubarão in Brazil, where a project to expand to 10Mt/y is being studied, long steel mill Acindar in Argentina, specialty steel operation Inox Brasil and numerous other Brazilian assets. The Luxembourg-based giant also has operations in Mexico, Costa Rica and Venezuela.

ArcelorMittal produced 116Mt crude steel worldwide in 2007, representing around 10% of global steel output. – Business News