Nippon Steel to Support Usiminas’ Expansion and Better Quality

Nippon Steel announced on Thursday the equity method affiliate, Usiminas of Brazil decided to build new blast furnace with 5,000 cubic meters of capacity, which is the largest furnace in Americas. Nippon Steel and Usiminas decided to add second hot-dip galvanizing line with 400,000 tonnes of annual output capacity at the joint venture, Unigal. Usiminas expands the raw steel output by more than 2.2 million tonnes to over 11 million tonnes by 2011 through the expansion for existing steel works. The firm targets 14-15 million tonnes of output with new steel works with 3 million tonnes of capacity. Nippon Steel provides full support for the expansion in quantity and quality as the part of growth strategy for 40 million tonnes plus alpha of volume.

Usiminas submits order for the US$ 5.7 billion expansion for existing works in the year. The firm expanded the blast furnace scale to 5,000 cubic meters of capacity at Ipatinga for steel source utilization by Nippon Steel from original idea of 3,000 cubic meters. The firm also builds new 1 million tonnes coke oven, 3.7 million tonnes sinter plant at Ipatinga while the firm expands the capacity by 600,000 tonnes for hot strip mill and by 500,000 tonnes for plate mill. The firm also builds new hot strip mill with 4 million tonnes of capacity at Cubatao works.

Unigal adds no.2 galvanizing line in addition to expansion for existing line capacity from annual 400,000 tonnes to 480,000 tonnes. The firm tries to meet growing demand when Brazil’s automobile output is expected to reach 3 million units in 2008 from 2.6 million units in 2006.

Usiminas tries to improve the production ability for high valued steel items for automobile and energy industry along with higher volume, better efficiency and environmental countermeasure. The firm will improve the technology and products line with full support by Nippon Steel and seeks growth opportunity in and out of South America.

Usiminas still studies for new US$ 2.7 billion steel works including site, time frame and potential joint venture scheme with Nippon Steel. Usiminas could build a blast furnace and a steel making shop to make semi-finished steel. The firm tries to build optimize production system by combining facilities in existing works and new works.