Usiminas delays blast furnace investment to 2023

Usiminas delays blast furnace investment to 2023

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Brazilian flats steelmaker Usiminas said late this week it will delay the reform of its No. 3 Ipatinga blast furnace, located in the city of same name, in the state of Minas Gerais by 10 months. Usiminas now expects to resume the project by 2023.

Usiminas said its board of directors approved to delay the investment due to the “continuity of Covid-19 and its effects” and also because the “stable operational performance” of the equipment.

Additionally, Usiminas also reviewed the amount of money it would spend to reform the equipment. The company said it reduced the investment to BRL 2.09 billion ($379.6 million) due to the appreciated USD over the BRL, and the increased cost of materials and services.

Usiminas said it will complete the investment by 2023. The revised investment doesn’t affect the company’s existing Capex spending forecast for 2021, the company said.

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