ArcelorMittal to invest $1.6 bn in Brazil

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Global steel player ArcelorMittal on Thursday said it would invest 1.6 billion dollars to enhance crude steel production capacity in Brazil.

The company would expand its crude steel production capacity to 6.5 million tonnes in the long carbon sector in Brazil, from the current 3.9 million tonnes, a statement from ArcelorMittal said.

The investment, which is in addition to the previously announced 1.2 billion dollars capital inflow for the expansion of the Monlevade plant in Minas Gerais, is expected to be completed within 30 months, the statement said.

"Our growth plans at Monlevade, along with this additional investment of USD 1.6 billion, is an integral part of the investment program for our Brazilian operations, focusing on all the main long product lines," ArcelorMittal Group Management Board member Gonzalo Urquijo said.

However, the world's largest steel maker would announce the final location for these new investments after the conclusion of feasibility studies.

The new investment program would consist of construction of two new blast furnaces, with a total capacity of four lakh tonnes per year, two electric arc furnaces and others for the production of medium or heavy structural sections for the automotive industry.