Brazil to Invest US$ 13 Billion in 5 Years in Steel Production

    The Brazilian steel industry plans to invest US$ 13 billion in the next five years so as to increase production. With these funds, the country steel production should grow from the 34 million to 50 million tons.

    This statement was made by the new president of the Brazilian Steel Institute (Instituto Brasileiro de Siderurgia, IBS), Luí­s André Rico Vicente, who took office yesterday.

    According to Vicente, this expansion does not include projects by Vale do Rio Doce, the largest mining company in Brazil, which may increase the country’s productive capacity as high as 60 million tons.

    Vicente believes that this growth is more than enough to supply the domestic demand and cater to exports. According to figures supplied by the IBS, last year exports total led 11.9 million tons of steel, reaching a record value of US$ 5.3 billion, this represented 13.9% of the country trade surplus.

    According to Vicente, there are forecasts for a 2.9% drop in exports this year, resulting in sales of 11.6 million tons in 2005.

    With regard to the production of steel this year, the new president of the IBS stated that the forecast is for a 2% increase, from 32.6 million tons to 33.6 million tons.

    For Vicente the good perspectives for the sector are due to the modernization of the industrial park, to cost reduction and improvement of product quality and managerial methods.

    Among the investments that the Brazilian steel sector should receive is the construction of a flat steel factory in the northeastern Brazilian state of Pernambuco.

    Russian metallurgy companies TMK and Commetpron have announced that they are willing to invest US$ 2 billion in the mill.

    They intend to produce up to 3 million tons a year. Around 80% of the volume should be turned to export.

    If the project works out, it would be the first of the kind by Russian companies in the Americas. The companies have already signed a protocol of intentions with the government of the state of Pernambuco.



    • Show Comments (0)

    Your email address will not be published. Required fields are marked *

    comment *

    • name *

    • email *

    • website *


    You May Also Like

    Rio Favela

    Obama Wants to Visit Favela in Rio During His Trip to Brazil

    American president Barack Obama’s agenda for his visit to Brazil on March 19 and ...

    Brazil Wants Latin American Doors Open to Cuba

    A joint declaration by the presidents of Brazil, Luiz Inácio Lula da Silva, and ...

    Child prostitution in Brazil

    Up to Half a Million Kids Exploited for Prostitution in Brazil

    Brazil is among the 50 nations that  are part of the second tier of ...

    Brazilian baby names

    Brazilian Names Tell a Lot About Brazilian Parents

    Raimundo, Maicól, Paola – what can you learn from Brazilian names? Of course, they ...


    Brazil’s Exchange Surplus Reaches US$ 2 Billion

    Brazil's sum of dollar inflow and outflow in Brazil, a.k.a. flow of exchange, recorded ...

    Alexandre Siciliano, a Brazilian cardiologist at INC

    Brazilian Mission Trains Algerian Doctors in Children Heart Surgery

    Doctors from Brazil's National Institute of Cardiology (INC), based in the southeastern Brazilian city ...

    Barbecuer Ricardo Penna

    Brazil’s Barbecue Alchemist Is Bringing His Art to the US

    Neither doctor, nor astronaut, nor fireman. The childhood dream of Ricardo Penna was always ...

    Brazil’s Petrobras Reaches Record and Nears 2 Million Barrels a Day

    Brazil’s oil company Petrobras reached the record production of 1,912,733 barrels of oil in ...

    Oranges, a Brazilian export product

    Best Case Scenario for Brazil in 2009: 10% Decline in Exports

    Brazil's ACCs (Adiantamento sobre Contratos de Câmbio – Advances on Exchange Contracts), which are ...

    Swine flu

    Chile Accuses Brazil of Slamming Doors on Tourism for Its Swine Flu Policy

    Brazilian government advice against traveling to A/H1N1 virus flu-stricken Argentina and Chile by people ...