Brazil's Votorantim Metais has spun off its steelmaking assets into a new company, Votorantim Siderurgia, which as of July 1 became Brazilian conglomerate Grupo Votorantim's seventh industrial unit, a company spokesperson confirmed.
"The steel division is now apart from the metals division and Votorantim Siderurgia has become a new Votorantim business unit," the spokesperson told BNamericas.
The new president of Votorantim Siderurgia is Albano Chagas Vieira, who has been with the group since April 2006 and formerly worked for steelmakers Gerdau (NYSE: GGB), Companhia Siderúrgica Tubarão, Acesita, CSN (NYSE: SID) and Arcelor. Vieira is also an Usiminas board member.
In 2007, the group's steel business accounted for 29.2% of Votorantim Metais' revenues of 7.27bn reais (US$4.52bn). Steel manufacturing for the conglomerate has grown considerably since 2007 especially with the US$491mn acquisition of Colombian Acerias Paz del Río, a new US$1.2bn plant in Resende near Rio de Janeiro, and the acquisition of a 52.9% stake in Argentine company AcerBrag. The company also has a 23% participation in Usiminas.
After the acquisitions, Grupo Votorantim increased its steel output to 1.45Mt/y. With the new Resende plant and expansions slated for both Colombian and Argentine facilities, the company is forecasting a 3Mt/y output by 2012. Votorantim expects 750,000t from its Barra Mansa mill, 450,000t at Paz del Rio and 250,000t at AcerBrag.