Usiminas has started putting on tracks its plans to add value to steel, aiming at profiting by commercializing products with higher prices. In this pace, the steel mining company’s capital goods arm, Usiminas Mecânica, has just concluded the sale of 310 cars for cargo trains to major customers – Ferrovia Centro Atlântica (150 units), ALL (100) and CSN (60). And that’s not all: as of mid-2011, the expansion that will enable the company to operate its own line of railway trucks, the base of cars – couplers, sides and springs – shall be concluded.
For this purpose, Usiminas Mecânica invests R$ 49.5 million in the modernization of its capital goods unit. This amount includes the expansion of the plant’s molding line, including a new induction furnace with capacity to process six tons of steel per hour. The technology comes from the American-based company Standard Car Truck in exchange of royalties.
“We will fight for a nice market share. We are in advanced negotiations to virtually double the volume of contracts in our portfolio,” says Guilherme Muylaert, general superintendent of Usiminas Mecânica.
Currently with a nearly 15% share of the Brazilian market of cars – led by companies such as Amsted Maxion and Randon -, the company negotiates the commercialization of 400 cars, approximately 13% of the production forecasted for this year by the Brazilian Railway Industry Association (Associação Brasileira da Indústria Ferroviária (Abifer)).
Soon, the volume shall require another investment, to expand the plant maintained by Usiminas Mecânica in Ipatinga (MG), with an installed capacity of 500 cars a year. “Our project is to increase the production capacity,” says Jairo Cruz, responsible for casting, forging and cars in the company.
The improvements are made to automate the casting, which will also receive a sand retriever to reuse 85% of the input used for casting large parts from liquid steel. “We currently have a small market share due to the lack of competitiveness caused by the purchase of cast items from third parties. When we have our own automated line ready, we will increase our market share,” says Cruz.
Exports
The plan is to increase the profit margin with the sale of cars with their own trucks embedded. The cast components, approximately four tons in each car, are responsible for approximately 25% of the machine’s final price. The new casting line will have capacity to produce 24,000 tons a year. The volume is above the annual average estimated by Abifer for the Brazilian market, calculated in 18,000 tons. “Our focus will be to serve the market to enjoy the capacity installed. The automated casting can produce both for us and for third parties, such as the segment of agricultural inputs and mining. We can also sell to competitors in cars,” he states.
Exporting is also on the plans, via Standard Car Truck. “Although it is the largest company in the segment, Star Truck does not make trucks,” says Jairo Cruz. “The idea is for our automated molding line to supply the railway trucks for Star Truck to commercialize outside Brazil. The transfer contract gives opening to this,” concludes Cruz.
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