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Brazil’s CSS postpones flat steel mill start-up until 2015

Keywords: Tags  Cia. Siderúrgica Suape, CSS, Brazil steel, steel mill, flat steel, Fábrica Participações, Moura Dubeaux, Ana Paula Camargo


SÃO PAULO — Steel industry newcomer Cia. Siderúrgica Suape (CSS) has delayed commissioning of its flat-rolled steel mill in northeastern Brazil’s port of Suape.

The start-up is now expected to take place in early 2015, a year after the originally estimate.

CSS revised the project’s schedule based on the progress of engineering work, the licensing process and market expectations, a company spokesman told AMM sister publication Steel First.

CSS will initially have an 800,000-tonne-per-year rolling mill capable of producing hot-rolled, cold-rolled and coated flat steel products. The company expects the plant’s capacity to reach 1 million tonnes per year some 18 months after start-up, once market conditions are favorable.

CSS has also postponed commissioning of service center units in Suape that were originally slated for the end of 2012. The first service center facility is now expected to come on-stream in early 2015. Its capacity will be doubled to 250,000 tonnes per year once CSS’ rolling mill is operational, the company said.

The project’s investment, however, continues to be pegged at 1.5 billion reais ($757 million).

The Recife, Brazil-based steelmaker is in negotiations with slab suppliers in Brazil and elsewhere to feed its rolling mill, but it didn’t disclose the names of the companies involved.

CSS is a joint venture of Brazil’s Moura Dubeux Engenharia SA, also based in Recife; and Fábrica Participações, Rio de Janeiro.

A version of this article was first published by AMM sister publication Steel First.


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