November 22, 2008

Votorantim Metais secures USD 336 million from BNDES for new mill

BNamericas reported that Brazil's federal development bank BNDES approved a BRR 540 million loan for the implementation of steelmaker Barra Mansa's second mill in Resende near Rio de Janeiro.

The BNDES financial assistance equals 45% of BRR 1.2 billion investment.

Owned by Votorantim Metais, the new mill is projected to produce 1 million tonnes per year in long steel products and the project will provide 700 new direct jobs.

The report further added that the new semi integrated mill is already being built and is expected to be operating by 2009 to supply Brazil's heated construction sector with wire rods, billets and concrete reinforcing bars.

Since 2002, Barra Mansa has been upgrading its production facilities. Grupo Votorantim revamped the company's rolling mills, and between 2003 and 2006 built a new ingot line.