ArcelorMittal Pecem plans to increase production and export of slabs to Europe

At the first stage, the plant plans to increase production from the current 2.85 million tons per year to 3 million tons per year

Brazilian high-quality slab producer Companhia Siderúrgica do Pecém (CSP), recently acquired by the world’s largest steelmaker ArcelorMittal, plans to increase production and exports to Europe. This was announced by CEO of the South American division of ArcelorMittal Jorge Oliveira, informs SteelOrbis.

At the first stage, the Brazilian plant plans to increase the production rate of slabs from the current 2.85 million tons per year to 3 million tons per year. Such a goal has not been achieved since the opening of the enterprise in 2008.

As Jorge Oliveira points out, during 2023 the company will evaluate in more detail the alternatives for the verticalization of CSP production, as he believes that Pecem’s capacity increase makes sense in the future, despite the uncertainty of the macroeconomic scenario that could affect steel consumption in Brazil.

“Synergies from the acquisition of Companhia Siderúrgica do Pecém, estimated at $50 million per year as a result of pre-acquisition studies, can be achieved in the near term,” he added.

After the acquisition of Pecem, ArcelorMittal increased its flat steel production capacity in Brazil to 10.5 million tons per year. Taking into account the long steel, the capacity of the Brazilian division increased to 15.5 million tons/year.

CSP is a world-class enterprise that produces high-quality slabs at a competitive price. The facility is located in the state of Ceara in northeastern Brazil. The plant is equipped with a blast furnace with a capacity of 3 million tons, and has conveyor access to the port of Pesem.

As GMK Center reported earlier, ArcelorMittal announced that it has signed an agreement with the shareholders of Brazil’s Companhia Siderúrgica do Pecém (CSP) to acquire the company for $2.2 billion at the end of July 2022. The closing of the deal was planned for the end of 2022.

In March 2023, the company announced its completion of acquisition of CSP after receiving regulatory approvals. ArcelorMittal intends to supplement the production capacity of the plant with the main units for steel production, rolling and processing, as well as to develop low-carbon production.