In the early 90's, it was obvious that
the model of strong presence of the State in the economy
had worn out. In 1991, the privatization process of the
steel companies started. Two years later, in 1993, eight
state companies, with a combined output of 19.5 million
tonnes (70% of the country's total output), had been privatized.
Between 1994 and 2004, the steel companies
invested US$ 13 billion, placing priority on the modernization
and technological update of the mills. In 1999, the Brazilian
steel output was 25 million tonnes per year. Last year,
it reached 32.9 million tonnes.
Today, the sector comprises Acesita,
Aços Villares, Companhia Siderúrgica Belgo
Mineira, Companhia Siderúrgica Nacional (CSN),
Companhia Siderúrgica de Tubarão (CST),
Gerdau Açominas, Siderúrgica Barra Mansa,
Usiminas / Cosipa, V&M do Brasil and Villares Metals.
This represents 24 mills controlled by 11 companies, employing,
in 2004, 90,385 people, among staff and outsourced personnel.
The investment forecast by the sector
between 2005 and 2010 is of US$ 12,5 billion, aiming at
an installed capacity of 49.7 million tonnes by the end
of this period. This new investments cycle is focused
on the increase of the output, so as to meet the growth
of domestic demand estimated at over a million tonnes
per year in the 2005-2010 period.
Foreign producing groups are studying
the possibility of investing in the construction of new
mills in Brazil, mostly in the North and in the Northeast,
aimed at exporting semi-finished goods.
All this investment is steered by management
processes based on social responsibility. In 2004, 74%
of the Brazilian steel output was obtained through integrated
mills from iron ore and 26% through semi-integrated from
recycling 8 million tonnes of scrap. A coal-intensive
industry, the Brazilian steel industry produced 25% of
the electric energy necessary to its activities in 2004.
