Reuters reported that ThyssenKrupp is ramping up production at its USD 12 billion plants in Brazil and the United States, underpinning its ambitious growth strategy in Europe and the NAFTA region. The first line of production at the EUR 5.2 billion Brazil plant started last month and the first hot rolled coil, a key steel product for making cars, was produced at the USD 5 billion steelmaking and processing plants in Alabama. ThyssenKrupp decided this month to move forward to end 2010 the launch of Brazil's second line of production from its previous schedule of first quarter next year. Faced by a slump in steel demand last year, it had opted for a gradual ramp up at all plants. Here are some facts on the Brazil and Alabama plants:
Cost overruns have dogged the plant, whose original EUR 3 billion budget in 2006 was raised to around EUR 4.5 billion in 2008 after the recession and five months later, to EUR 5.2 billion. It was originally due to start in early 2009. It is located in the state of Rio de Janeiro and is the biggest industrial investment in Brazil in the past ten years. It is the first major steel mill to be built in the country since the mid 1980s. It will produce 5 million tonnes of high-quality low cost slabs, which are semi finished products used to make a variety of other finished products, such as hot and cold rolled sheets, hot and cold rolled coils, pipes and plates. Out of the 5 million tonnes of slabs, 3 million will go to Alabama for processing into steel products and 2 million to Germany.
Brazilian mining company Vale has around 27% stake in the plant, which will be supplied by the miner's iron ores from the Minas Gerais region There are two main plants, the flat rolled carbon steel mill which costs USD 3.6 billion and a nearby USD 1.4 billion new stainless steel plant. The carbon steel plant has a hot strip mill, with annual 5 million tonnes capacity, a cold strip line with 2.5 million tonnes, and galvanizing lines of 1.8 million tonnes. The stainless steel mill will start production in October 2010, initially with a reduced cold rolled capacity of around 100,000 tonnes per year and expanding to a maximum of 140,000 tonnes. The startup of other units for stainless steel products will be spread out over a longer period, with flexible ramp up, such as the melt shop, whose start up was planned for early 2012 but was delayed by up to 24 months.
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