Metal One, Usiminas To Raise Steel Pipe Capacity 40%

by tubelinks on 10/01/2011 - 03:04 pm

Tag: Press Release

Steel trading firm Metal One Corp. and Brazilian steelmaker Usinas Siderurgicas de Minas Gerais SA, or Usiminas, plan to expand steel pipe manufacturing capacity in Brazil by 40%.

By June 2012, capacity will be increased at a plant in the southern state of Rio Grande do Sul and at another in the eastern state of Sao Paulo, resulting in a combined capacity of 14,000 tons a month.  The expansion will cost 30 million reais, or around 1.26 billion yen.  The factories are operated by steel processor Solucoes em Aco Usiminas SA, also known as Solutions Usiminas, in which Metal One has a 20% interest and Usiminas holds a 68.9% stake.

Both facilities turn steel sheet procured from Usiminas and other steelmakers into steel pipe by bending and welding it.  Capacity will be raised by upgrading equipment with low production efficiency.

The expansion comes in response to growing demand for support pillars for belt conveyors used in mine development.

Launched in 2009, Solutions Usiminas reported 1.98 billion reais in revenue in 2010 and is expecting 1.89 billion reais this year.