Belgo-Mineira looks at splitting into two

Brazilian long steelmaker Belgo-Mineira is analyzing a restructuring plan that would divide its operations into two companies, it told the Sao Paulo stock exchange, Bovespa. Under the proposal, the operation of Belgo's mini-mill units, which concentrate on products for the long steel market, would be centralized under the newly created company BMP. BMP was formed in February this year from the acquisition of the Mendes Junior mill in Juiz de Fora. The units that would fall under the control of BMP include Vitoria, Piracicaba and Sao Paulo. "Belgo-Mineira would remain with the activities of the integrated steel mills [the Monlevade mill] and also the unit in Sabara, which makes products for civil construction and bars for the automobile industry," a company spokesperson told BNamericas. Dividing the company into two would allow Belgo to reduce its tax burden, and restructure BMP's debt. The spokesperson emphasized that the plan still requires the approval of the company's board. Belo Horizonte-based Belgo-Mineira, Brazil's second largest long steelmaker, is controlled by Luxembourg steel group Arcelor.