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Significant impact with a focus on modernization and innovation at the Tubarão plant, promoting economic development and job creation
In a strategic decision, the ArcelorMittal canceled the expansion of the plant in João Monlevade, Minas Gerais, opting for a robust investment of $ 4 billion na Shark Power Plant, located in Espírito Santo.
This movement aims to modernize and innovate the lamination and coating lines, reinforcing the competitiveness of the industrial park.
Focus on innovation and competitiveness
According to ArcelorMittal, the focus is now on modernizing and innovating the unit João Monlevade to increase competitiveness.
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The decision to halt the expansion, which had already begun in September 2024 due to the high volume of steel imports, especially from China, does not diminish the importance of the unit for the company.
The plant continues to be fundamental, especially as it is the only producer of steel cord for the automobile market in Brazil.
Impact of investment in Espírito Santo
The planned investment for the Shark Unit is significant, varying between R$3,8 billion and R$4 billion. This project is part of a broader strategic plan, with a total of $ 25 billion forecast for investments in Brazil between 2022 and 2028.
The new facilities will include a Cold Strip Mill (CSL) and a Continuous Coating Line, which will allow the unit to expand its production chain and offer products with greater added value.
Commitment to economic development
Jorge Oliveira, CEO of ArcelorMittal Flat Steel Latin America, highlighted that the Tubarão Unit project is not just an investment, but a milestone for the development of Espírito Santo and Brazil.
This investment will strengthen the company's presence in high-value markets, such as the automotive, home appliance and construction sectors.
Job creation and focus on innovation
During peak construction, the project in Espírito Santo is expected to generate around 2.500 job vacancies, and when operational, the new line will demand approximately 450 professionals.
Job creation is one of the positive aspects of this investment, contributing to local economic development.
ArcelorMittal reactions and expectations
In Minas Gerais, the Metalworkers Union of João Monlevade (Sindmon-Metal) expressed his dissatisfaction with the cancellation of the expansion, asking the company to ensure better safety and working conditions for employees.
A ArcelorMittal, in turn, assured that Brazil continues to be a priority for the group, highlighting the potential for increased steel consumption in the medium and long term.
With the technical feasibility studies completed, the project in Espírito Santo is now undergoing internal approval procedures.
Construction is expected to last around three years after this phase, marking a new chapter in the history of ArcelorMittal in Brazil.
This investment not only reaffirms the company's commitment to innovation, but also reinforces its strategy of expanding the supply of high value-added products to meet the demands of the end consumer.
SOURCE: OTEMPO
If China also establishes itself here without strong competition, it will see how much the product will cost, in the case of steel. A Chinese steel industry is also welcome, as China reduces the value of products in the world and the cheaper the better.
This cold strip mill was what Arcelor Tubarão was missing, without a doubt! The production plant there is incredible!