IBS estimates raising production until 2012
Valor Econômico - 01/30/2008
The metallurgical industry does not believe in an "abrupt" recession and does not intend to review their investments in Brazil because of the imminence of an international crisis. In a meeting with president Luiz Inácio Lula da Silva in the Planalto Palace, yesterday, the council of directors of the Brazilian Institute of Metallurgy (IBS) reaffirmed the intention of increasing the productive capacity of the current steel factories by 11 million tons until 2012. In addition to that, new companies are being formed in the country now - such as the associations of the Companhia Vale do Rio Doce with Korean Dongkuk and Chinese Baosteel - will produce 6.8 million tons a year until 2012. The long term investments are "constantly reviewed", but the decisions taken for the expansion of the capacity until 2012 have passed the point of no return", according to the executive. "The metallurgy is completely prepared to meet the growth of the internal demand", he says. For him, there may even be a slowing down of the demand, but the hypothesis of a lingering recession - both in Brazil and in the world - is ruled out. "Our understanding is that we should not have any abrupt recession", added Soares. He said that he is concerned with the possibility of shortage in the supply of the electric sector, but he emphasized that the sector's companies are increasingly self-sufficient in energy. In the case of the CST, 100% of the generation is its own, and at Usiminas that volume is being expanded from 28% to 53% starting in May. Regarding Vale's entrance in the sector, the executive said that the metallurgy industries are not against it.