ArcelorMittal Pecém is moving forward with the first phase of its hot-rolled coil production line project

An initial investment of around $7 million will be channelled into engineering research

ArcelorMittal’s facility in Pesém (Ceará, Brazil) has announced the approval of the first phase of a strategic project aimed at developing a new hot-rolled coil production line. This was reported by Portal Terra da Luz.

This phase (initial investment) involves an investment of 35 million reais (around $7 million), earmarked for engineering and development work. The phase does not yet include construction work or the procurement of equipment. The start of physical construction will depend on the results of engineering studies and subsequent approval by ArcelorMittal’s board of directors.

This initiative also paves the way for the potential introduction of innovative technologies in Latin America, featuring a more compact and energy-efficient production process.

Currently, the Pecém plant specialises exclusively in the production of semi-finished products – steel slabs. Thanks to potential new investments, the plant could also begin producing hot-rolled coils, whilst maintaining its nominal production capacity of 3 million tonnes of steel per year.

Although this represents progress towards technological modernisation and the production of higher value-added steel in Ceará, ArcelorMittal has emphasised that the project still requires further assessment.

According to the Ceará state government, the full implementation of the project may require an investment of around 4.5 billion reais ($872 million). The initiative could create around 3,000 jobs during the construction phase, as well as supporting the development of the region’s industrial base.

It should be noted that ArcelorMittal plans to integrate the EAF into its electrical steel production chain in Europe.