FACTBOX-ThyssenKrupp’s plants in Brazil and Alabama

FRANKFURT, Aug 26 (BestGrowthStock) – ThyssenKrupp, Germany’s
biggest steelmaker, is ramping up production at its $12 billion
plants in Brazil and the United States, underpinning its
ambitious growth strategy in Europe and the NAFTA region

The first line of production at the 5.2-billion-euro ($6.60
billion) Brazil plant started last month and the first hot
rolled coil, a key steel product for making cars, was produced
at the $5-billion steelmaking and processing plants in Alabama.

ThyssenKrupp decided this month to move forward to end-2010
the launch of Brazil’s second line of production from its
previous schedule of first quarter next year.

Faced by a slump in steel demand last year, it had opted for
a gradual ramp-up at all plants.

Here are some facts on the Brazil and Alabama plants:


* Cost overruns have dogged the plant, whose original
3-billion-euro budget in 2006 was raised to around 4.5 billion
in 2008 after the recession and five months later, to 5.2
billion euros. It was originally due to start in early 2009.

* It is located in the state of Rio de Janeiro and is the
biggest industrial investment in Brazil in the past ten years,
according to ThyssenKrupp.

* It is the first major steel mill to be built in the
country since the mid-1980s.

* It will produce 5 million metric tonnes of high-quality
low-cost slabs, which are semi-finished products used to make a
variety of other finished products, such as hot and cold rolled
sheets, hot and cold rolled coils, pipes and plates.

* Out of the 5 million tonnes of slabs, 3 million will go to
Alabama for processing into steel products and 2 million to

* Brazilian mining company Vale (VALE5.SA: ) has around
27-percent stake in the plant, which will be supplied by the
miner’s iron ores from the Minas Gerais region.


* There are two main plants — the flat-rolled carbon steel
mill which costs $3.6 billion and a nearby $1.4 billion new
stainless steel plant.

* The carbon steel plant has a hot strip mill, with annual 5
million tonnes capacity, a cold strip line with 2.5 million
tonnes, and galvanising lines of 1.8 million tonnes.

* The stainless steel mill will start production in October
2010, initially with a reduced cold-rolled capacity of around
100,000 tonnes per year and expanding to a maximum of 140,000

* The startup of other units for stainless steel products
will be spread out over a longer period, with flexible ramp-up,
such as the melt shop, whose start-up was planned for early 2012
but was delayed by up to 24 months.

(Editing by Sitaraman Shankar)

FACTBOX-ThyssenKrupp’s plants in Brazil and Alabama