Management capacity and production efficiency characterize the activities of Votorantim Metals.  Our company is among the world’s ten largest producers of zinc. We are Latin America’s largest producer of nickel electrolytic, and Brazil’s third largest producer of structural steel.

In Brazil, we operate eight industrial units and four of our own mines, located in the states of São Paulo, Rio de Janeiro, Minas Gerais and Goiás. Outside of Brazil, Votorantim Metals owns the Cajamarquilla refinery and the Milpo Mining Company, both in Peru, and is the majority shareholder of the Acerías Paz Del Rio Steel Company, in Colombia.

To sustain the strong expansion and growth rate of its operations, Votorantim Metals included over 12,400 direct employees in the first half of 2007.

Thanks to its fully integrated production process – the company has operated mines since 1956 – Votorantim Metals can guarantee a supply of quality products at competitive prices, as well as constant growth.  In 2006, the company achieved sales of R$5.4 million (Brazilian reais), 54% greater than those of the previous year.

In order to improve our internationally-recognized standards of quality, Votorantim Metals continuously invests in increasing our production capacity and the personal and professional growth of our team members.  Additionally, concern for sustainability is a constant at VM. The company currently generates approximately 60% of the electricity consumed by its production units and invests in development of proprietary technology, mineral research, and responsible environmental management.

From 2002 to 2006, Votorantim Metals invested R$ 3.7 billion (Brazilian reais) in expanding its production capacity and acquiring companies. In 2006, the company invested R$ 587 million (Brazilian reais) in increasing production capacity.

 In 2007, with an investment of R$ 1,025 million, VM became the majority shareholder in the Columbian metal company Acerías Paz del Río and announced the start of construction of a new steelworks in Brazil, to be installed in the city of Resende (Rio de Janeiro state). With a capacity to produce 1 million tons of long steel per year and a total investment of R$1 billion, the plant will have 60% of its production devoted to the Brazilian market. The new unit, VM’s second in Brazil, will be constructed in two phases, in an area of 4.3 million m².

It is expected that the first phase of the project starts operating in 2009. The second phase will follow the market development.

In addition to investing in expansion, VM dedicates part of its resources to social, environmental, cultural, and safety projects.  In 2006, we invested R$ 86 million (Brazilian reais) - R$ 75 million (Brazilian reais) in environmental and safety programs, and R$ 11 million (Brazilian reais) in social and cultural programs.