The European Investment Bank (EIB) is providing EUR 130 million to co-finance the investment programme of Arcelor Mittal Brasil (AMB) to upgrade its three major production sites in the country. The loan contract was signed today.
The projects concern the plants of Vega do Sul in the state of Santa Catalina and Cariacica in the state of Espirito Santo, where investments will focus on upgrades of the existing production lines to meet the growing demand for higher value added products, both from the domestic appliances and machines industry and the growing national construction market. The improvements in the industrial processes will bring about significant energy savings and emissions reductions, as well as waste reduction, with resultant environmental benefits.
The third plant concerned is that of Tubarão, in the state of Espirito Santo, where in addition to upgrades in the production lines, investments will involve the modernisation of two existing power plants, based on the recovery of process gases, which will contribute to improving energy efficiency and therefore the environmental situation, reducing SO2 and greenhouse gas emissions. The three sites are surrounded by large green belts owned and maintained by AMB with the purpose of limiting the environmental impact on the growing adjacent human settlements and where the company has various specific wildlife and nature conservation programmes.
Arcelor Mittal Brasil is the largest steel company in Latin America, with installed capacity of around 15 million tonnes per year. Its production is mainly for the domestic market, plus some exports to other American countries. The company forms part of the Arcelor Mittal Group.
In line with the European Union mandate guiding EIB lending in Latin America, the project will promote the economic development of Brazil through the direct creation of 200 jobs and some 3 000 person/years of employment during construction, will reinforce the position in Brazil of a major Europe-based company and will have a positive effect on the environment. All three are EU objectives.
The EIB is extending this loan in the context of the current lending mandate for Asia and Latin America (ALA IV), covering the period 2007-2013. Under this mandate the EIB is authorised to lend up to EUR 3.8 billion for financing operations that contribute to climate change mitigation or support the presence of the European Union (EU) in those regions through foreign direct investment and the transfer of technology and know-how.
The European Investment Bank is the EU’s long-term financing institution promoting European objectives. Set up in 1957, the EIB operates in the 27 EU Member States and more than 130 other countries in Asia and Latin America, Central and Eastern Europe, the Balkans, the Mediterranean region, Africa, the Caribbean and the Pacific. Lending operations outside the EU form part of EU cooperation policy with third countries.