Brussels, 26/03/2010 (Agence Europe) - The European Investment Bank (EIB) is providing €130 million to co-finance the investment programme of Arcelor Mittal Brasil (AMB) to upgrade its three major production sites in the country. The loan contract was signed on 26 March 2010.
The projects concern the plants of Vega do Sul in the state of Santa Catalina and Cariacica in the state of Espirito Santo, where investments will focus on upgrades of the existing production lines to meet the growing demand for higher value added products, both from the domestic appliances and machines industry and the growing national construction market. The improvements in the industrial processes will bring about significant energy savings and emissions reductions, as well as waste reduction, with resultant environmental benefits. The third plant concerned is that of Tubarão, in the state of Espirito Santo, where in addition to upgrades in the production lines, investments will involve the modernisation of two existing power plants, based on the recovery of process gases, which will contribute to improving energy efficiency and therefore the environmental situation, reducing SO2 and greenhouse gas emissions. The three sites are surrounded by large greenbelts owned and maintained by AMB with the purpose of limiting the environmental impact on the growing adjacent human settlements and where the company has various specific wildlife and nature conservation programmes.
Arcelor Mittal Brasil is the largest steel company in Latin America, with installed capacity of around 15 million tonnes per year. Its production is mainly for the domestic market, plus some exports to other countries in the Americas.
In line with the European Union mandate guiding EIB lending in Latin America, the project will promote the economic development of Brazil through the direct creation of 200 jobs and some 3,000 person/years of employment during construction, will reinforce the position in Brazil of a major Europe-based company and will have a positive effect on the environment. All three are EU objectives. (O.L./transl.fl)