JBIC signed a loan agreement totaling up to 120 million dollars with Usinas Siderurgicas de Minas Gerais S.A. (USIMINAS), Nippon Steel Corporation (NSC)’s equity-method affiliate incorporated in Brazil. The loan was cofinanced with a private financial institution, with JBIC providing guarantee for the cofinanced portion.
This loan finances USIMINAS to add a new rolling mill for the existing heavy plate production facility in Ipatinga, located in the State of Minas Gerais. As growing demand for steel products is expected in Brazil due to its economic growth, the heavy plates produced by this project are planned to be sold as high-value-added steel to satisfy the demand of energy and shipbuilding industries in the country.
Amid increasingly intense competition in the global steel industry, NSC sees the expansion of overseas operations as one of the key components in its business strategy. Designating USIMINAS as one of the “Global Tri-polar Production and Processing Bases,” which covers the American and Pan-Atlantic emerging market, NSC has provided the most advanced technology to USIMINAS for the heavy plate production facility. This loan will support NSC’s overseas business strategy, which will ultimately serve to maintain and enhance the international competitiveness of the Japanese steel industry.