Nippon Steel Supports Usiminas’ Major Expansion

Nippon Steel announced on Wednesday the equity method affiliate, Usiminas of Brazil will build new integrated slab making steel works with annual 5 million tonnes of output capacity near Ipatinga works. The firm scaled up the investment plan to US$ 14.1 billion by 2012, which is 1.5 times of former plan. The firm keeps studying for new slab making plant with 3 million tonnes of capacity near Cubatao and tries to expand the total raw steel output capacity by up to 8 million tonnes to 17.4 million tonnes. Nippon Steel provides full support for the aggressive plan to expand the capacity and to improve the quality from mining to finished operation. Usiminas planned 2.2 million tonnes of expansion for steel making capacity at Ipatinga by building new 4 million tonnes blast furnace and by shutting down old furnaces. The firm revised the expansion plan upward and decided to build new steel making works with 2 blast furnaces in Santa do Paraiso, which is 7 kilometers away from Ipatinga, instead of new blast furnace at Ipatinga while the firm keeps operation of old furnaces at Ipatinga. The firm launches one of the new blast furnaces in first half of 2011 and starts second furnace in 2012. The firm also revised the expansion plan for rolling operation. The firm now plans to expand the output capacity by annual 150,000 tonnes for hot strip mill at Ipatinga, instead of original 600,000 tonnes. The firm expands the rolling capacity by total 5.45 million tonnes including 500,000 tonnes expansion of plate mill at Ipatinga and new 4.8 million tonnes hot strip mill at Cubatao. The firm expends US$ 5.7 billion for the expansion, in which the raw steel output capacity increases from current 9.4 million tonnes to 14.4 million tonnes. The firm could expand the raw steel output capacity to 17.4 million tonnes when the firm decides the 3 million tonnes of slab making plant near Cubatao. The firm could expand the output capacity to 20 million tonnes level when the new plant in Santa do Paraiso has room to add 2.5 million tonnes of raw steel making facilities and rolling operations.