Brazilian steelmaker Usiminas will maintain the US$14.1bn in investments budgeted through 2012 despite the global financial crisis, company CFO Paulo Penido said Wednesday at a meeting with investors and analysts in Rio de Janeiro.
The investments include a new 5Mt/y facility in Santana do Paraíso in Minas Gerais state. Scheduled to have its first phase operational in 1H11, the facility will initially produce 2.5Mt/y. The second phase is slated for 2012 and will provide an additional 2.5Mt/y.
"We will, of course, keep a close eye on what is going on in the world and manage the crisis," said Penido. "But obviously if the crisis worsens we have the ability to make adjustments such as the postponement of the second phase."
The executive added that the company will be prepared to make adjustments according to Brazilian consumer behavior.
"We are expecting growth in Brazil's surging naval and petroleum industry," he said. "We are confident that our flat steel sector is going to have solid demand in the next few years so we understand that we should keep our growth plans."
Penido said the company is also investing US$2.1bn to expand existing plants.
Usiminas is amplifying rolled products capacity by an additional 650,000t/y, adding 550,000t/y in galvanized products and increasing heavy plate production by 500,000t/y, he said.
"Heavy plates are instrumental for Brazil's growing petroleum industry," Penido said.
The startup of the expansion projects is slated for 1H11.
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