Business News Americas reported that ArcelorMittal will temporarily halt the USD 1.2 billion expansion project at its Monlevade steel plant in Brazil''s Minas Gerais state due to the global economic slowdown and the fragility of European and US markets.
A company spokesperson told BNamericas that “This is a temporary measure due to market conditions and the decision will be reassessed in due course.”
He added that “ArcelorMittal continues to believe in Brazil''s growth and confirms that it does not intend to cancel the project.”
He told “Steel demand growth in Brazil has been lower than originally planned and the company has sufficient production capacity there.”
He added that the company will closely monitor market developments to respond quickly to future customer demands.
The company started the project to double capacity at Monlevade in May 2010. The goal was to reach crude steel capacity of 2.4 million tonnes in 2012. Works included the construction of a new sinter unit with capacity of 2.3 million tonnes, a new blast furnace with capacity of 1.12 million tonnes to increase production of pig iron, and a third rolling line to process 1.15 million tonnes and raise output of wire rods to 2.3 million tonnes. Billet capacity was set to increase to 2.4 million tonnes.
( Source: www.steelguru.com )