By Brazil Stock Guide – Brazilian steelmaker Usiminas (B3: USIM3, USIM5, USIM6) has started a roughly R$1.7 billion investment to rebuild Coke Oven Battery 4 at its Ipatinga industrial complex in Minas Gerais, a project designed to strengthen the company’s production capacity and improve competitiveness.
According to Brasil 247, the project is expected to create about 800 jobs during construction, with the new battery scheduled to begin operations in 2029. The existing structure, which is currently inactive, will be demolished and replaced with a new facility equipped with updated technology.
The project is intended to restore Usiminas’ capacity to produce coke and coke oven gas internally, reducing its dependence on coke purchased from third-party suppliers.
Restoring in-house coke production
Coke is a key input in steelmaking, particularly in blast-furnace operations. Restoring internal production is expected to give Usiminas greater control over a critical part of its production chain while helping the company reduce costs and improve operational predictability.
The new battery will also restore the production of coke oven gas, a byproduct used within the Ipatinga industrial complex.
The R$1.7 billion project is part of a broader investment cycle at the Minas Gerais facility. In May, Usiminas said its strategic plan included R$3.5 billion in investments through 2029, focused on operational efficiency and competitiveness.
Chara calls for ‘fair competition’
Usiminas Chief Executive Officer Marcelo Chara linked the investment to the strategy of the steelmaker and its shareholder Ternium (NYSE: TX) to continue investing in Brazilian industry. He also renewed criticism of competition from imported steel that the company considers subsidized.
“We are now beginning mobilization for the construction of a new coke oven battery in Ipatinga, a R$1.7 billion investment to improve our competitiveness, which will replace an operation that had been deactivated. Usiminas defends the strength of Brazilian industry, and the Brazilian state knows it needs to act against subsidized imports to prevent the deterioration of its industry. We want fair competition,” Chara said.
Usiminas’ management has repeatedly advocated the use of trade-defense measures in response to rising pressure from imported steel in the domestic market.
Ipatinga modernization
The Battery 4 reconstruction is one of several projects under way as part of the modernization of Usiminas’ Ipatinga industrial complex.
Other initiatives include the hot repair of Coke Oven Battery 3, as well as projects involving a pulverized coal injection plant, known as PCI, and a new gas holder.
Usiminas recently completed its new PCI plant, an investment aimed at improving blast-furnace efficiency and lowering production costs. Together, the projects form part of the company’s effort to increase process stability, reduce operating expenses and reinforce the competitiveness of its steelmaking operations.
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