August 30, 2008

Hübner to add steel making to its pig iron project

BNamericas reported that Brazilian metallurgical group Hübner has decided to upgrade a pig iron project in Brazil's Paraná state to include steel production.

The report quoted Mr Nelson Roberto Hübner owner of Hubner as saying that "The pig iron project was designed in 2004 at a time when production was profitable due to the exchange rate and lower costs. But the exchange rate nowadays is different and internal costs have increased, making unviable an investment just to produce pig iron."

As a result of the strong local currency, Hubner decided to add value to the project and plans to produce up to 350,000 tonnes per year of steel products with special alloys. Mr Roberto said that "The unit will meet the needs of a specific niche that large steelmakers are not meeting currently. We would not be their competitors because we are small."

As per report, Hübner expects to receive all necessary licenses for the steel unit by the end of the first quarter of 2008. Investments in the plant, to be installed in Ponta Grossa city, are expected to hit USD 130 million. Construction is likely to start in the second half of 2008.