Centennial ArcelorMittal wants to be a Generation Z – ISTOÉ DINHEIRO

EXPANSION ArcellorMittal diversifies its portfolio and is optimistic about increasing steel production with advances in national infrastructure projects (Credit: Disclosure)

The world’s largest steel producer and one of the largest in Brazil, ArcelorMittal celebrated its 100th anniversary in the country in December. The Luxembourg-based steelmaker installed its first unit in the country in the city of Sabará (MG) in 1922. Today it has plants in six states, employs 16,000 professionals and has an annual production capacity of 12.5 million tons of crude steel and of 7.1 million tons of iron ore. A company with a giant structure, centenary, from one of the most conservative and traditional sectors of the economy, which in less than a year announced investments of R$ 7.6 billion in the Brazilian operation. For the next three years, it aims to modernize plants and equipment and place new, better quality products on the market.

Along with this mountain of money are projects that come out of AçoLab — ArcelorMittal’s open innovation laboratory — and the approach to startups. All of this works as a kind of cosmetic that rejuvenates the company to face its next centenary. “We were the first integrated plant in Latin America, 100 years ago. We’ve always had innovation in our DNA,” he said. Jefferson De Paula, president of ArcelorMittal Brasil. “It is not because we belong to a traditional sector that we should not be modern”, said the executive, who has held the positions of CEO of ArcelorMittal Longos in Latin America and Mineração Brasil.

The investment announcement took place on February 10. It will cost R$ 1.3 billion to modernize the Barra Mansa (RJ) plant. The project provides for the expansion of the plant’s current rolling mill, for the production of bars for the automobile industry. And the installation of a new rolling mill and improvements in the steel shop to expand the portfolio of high quality products. With this, the company will enter the market of beams for civil construction. “We will leave a plant that produces 300 thousand tons of steel per year and we will have a production of 750 thousand of high quality steel”, said De Paula. The supply will be primarily to the internal market.

The previous contribution was announced in November. R$ 4.3 billion will be invested in the Monlevade plant and in the Serra Azul mine, in Minas Gerais, which will have their capacities expanded. The plant will almost double its production capacity, going from the current 1.2 million tons of crude steel per year to 2.2 million tons per year in 2024. The Serra Azul mine will have its capacity practically tripled, from the current 1, 6 million tons/year to 4.5 million tons/year of iron ore. In April of last year, an investment of R$ 2 billion had already been announced in the expansion of the Vega unit, in São Francisco do Sul (SC), for the third galvanizing line and a new continuous annealing line.

INNOVATION The modernization of ArcelorMittal’s plants is supported by an optimism of the growth of the Brazilian economy, after a 23% growth in the general demand for steel in Brazil in 2021, to serve the market and replenish inventories. “This year should be accommodation. But we believe in medium-term advances in infrastructure, ports, railways, roads, energy projects, sanitation and agribusiness”, said the president of ArcelorMittal. “We have to be prepared to absorb the opportunities.”

The projects and investments to remain among the main steel companies in Brazil, together with CSN, Gerdal and Usiminas, come from AçoLab. Created in 2018, the hub is a pioneer in innovation in the world’s steel industry and one of the company’s 11 research and development laboratories around the world. Together, they have the collaboration of 1,300 engineers and researchers who carry out proofs of concept and test viable products. ArcelorMittal also maintains a traction and scale-up program for startups through venture capital, which has a fund of R$100 million to be invested in the next three years. There are also strategic partnerships with the Technological Innovation Center (CIT) of Senai de Minas Gerais for industry 4.0, and with the University of São Paulo (USP), with a focus on civil construction. Actions to make it lighter, more agile and young, characteristics of Generation Z (born between 1995 and 2010), a century-old company that is as consistent as steel.