Votorantin makes spin-off of VM and creates a holding in siderurgy
Valor Econômico - 07/04/2008
The steel production has gained a life of its own and has just become the seventh industrial business unit of the Votorantim group, together with non-iron metals (zinc, nickel, and aluminum), cement, cellulose and paper, energy, chemistry, and orange juice. With three plants in operation and one of long steels under construction and an expressive participation in Usiminas' capital (plain steels), Votorantim Siderurgy began to exist on July, 1st. In order to command VS, the group resorted to one of its own talents. It was nominated the executive man, Albano Chagas Vieira, with large experience in the sector and having worked in the group's general board, in charge of the industrial operations. The steel business responded for 29.2% of Votorantim Metais' R$ 7.27-billion income last year, including the equivalent participation in Usiminas and in Colombian Paz del Río plant. That is, 20.6% of the R$ 10.28-billion (US$ 5.33 billion) net income of the metals unit of the Votorantim Group. The siderurgy segment has gained great weight in VM since the beginning of 2007. The strategy in siderurgy became aggressive with the aim to be a major regional producer in the sector after the acquisition of Paz del Río, a little over one year ago, as remarked VM's managing director, João Bosco Silva. With the continued acquisitions, the Votorantim group started having the production capacity of 1.45 million tons of steel a year from this year on. With the Resende unit (1.05 million tons) and expansions already projected for Paz Del Río and AcerBrag, the forecast is to get to 3 million tons until 2012. The BNDES will finance R$ 540 million (US$ 337,5 million) of that project.