The Brazilian arm of ArcelorMittal inaugurated the new wire rod drawing line of its Sabará plant, located in the southeastern state of Minas Gerais.
With investments of BRL 144 million ($25.3 million), the new line will increase by 25 percent of the plant’s capacity to 170,000 mt per year.
The Sabará plant has up to 40 percent of its production destined to the auto industry, with highly valued products destined to the production of springs, shock absorbers, bolts, axles, stabilizing bars, and other products.
The expansion, along with the two new drawing equipment imported from Germany, includes a new warehouse for the stockpiling of finished steel products.
The expansion of the Sabará plant is part of the strategic plan of ArcelorMittal, which includes BRL 11.5 billion in Minas Gerais, to be allocated in the expansion of forest plantation to produce charcoal, a new continuous caster in the Juiz de Fora plant, the refurbishment of the blast furnace of the Monlevade plant, and the technological update of all steel plants, services and iron ore mining.
USD= BRL5.69 (March 18)