Votorantim Metals concentrates production in three segments: zinc, nickel and structural steel.
Its production units in Brazil are located in the states of Minas Gerais, São Paulo, Rio de Janeiro and Goiás. Outside of Brazil, VM has a refinery in Peru and is the majority shareholder of Colombia’s second-largest steel company.
Steel
Votorantim Metals’ Steel Business Unit began operations in 1937 with all production concentrated in the city of Barra Mansa, Rio de Janeiro. The plant, with a production capacity of 600 thousand metric tons of structural steel per year has used a sustainable development model since 1995, and uses recycled steel (scrap) as its main raw material.
In early 2007, VM's Steel Business Unit increased its capacity to expand by acquiring a 52% share of Acerías Paz Del Rio, Colombia’s second largest steel company. A producer of structural and rolled steel, this company has a productive capacity of 315 thousand metric tons per year.
Investments of R$ 461 million (Brazilian reais) are planned for 2007 to modernize the Barra Mansa plant, increasing its productive capacity 9.2%.
Still for 2007, there is an estimated investment amounting of R$ 461 million for the modernization of Barra Mansa mill. This unit will have its production capacity increased in 9,2%. Another investment of R$ 1 billion will be used for the construction of a new plant in Resende City (Rio de Janeiro State). The project named + Aço will broaden the Steel business production capacity for 1 million tons/year.
Nickel
Votorantim Metals is currently the largest Brazilian producer of Nickel and Latin America's only producer of electrolytic nickel.
This unit began operations in 1981 and now produces approximately 27 thousand metric tons of electrolytic and nickel matte per year, 47% of which is exported.
The mining area of this business unit is located in Niquelândia (Goiás), where laterite nickel is mined and nickel carbonate is produced. These products supply a metallurgical plant located in the neighborhood of São Miguel Paulista, São Paulo (SP). This unit manufactures electrolytic nickel and cobalt.
In Fortaleza de Minas, Votorantim Metals produces nickel matte for the international market. The productive capacity is 10 thousand metric tons of contained nickel.
In 2007, VM will invest R$ 738 millions on improvements and expansion of the Nickel Business Unit. R$558 millions out of this amount will be invested on the construction of a new plant in Niquelândia (Goiás State), to focus on the iron-nickel production. The remainder will be invested on the installation of a coke boiler in the existing operating unit in that town. The new boiler will enable the power matrix flexibility as it replaces the oil fuel usage.
Zinc
Votorantim Metals is the largest producer of zinc in Latin America and is among the ten largest worldwide. In 2006, its productive capacity reached 402.5 thousand metric tons per year.
The Zinc Business Unit began its journey in 1956, with the establishment of the Mineira Minerals Company in Três Marias, Minas Gerais. In 2002, it increased its activities by acquiring the Paraibuna Metals Company, housed in Juiz de Fora, in the state of Minas Gerais.
In 2004, Votorantim Metals took control of its first unit outside Brazil. The acquisition of the Cajamarquilla Zinc Refinery in Peru is a reflection of a new growth strategy for the Group, which intends to increase its activities in Latin America. The next year saw another accomplishment. VM acquired 24.9% of the shares of the Milpo Minerals Company, Peru’s forth largest Zinc mining corporation.
Today, VM maintains two mines in the cities of Vazante and Paracatu (Morro Agudo, and two industrial units, one in Três Marias and one in Juiz de Fora, all in the state of Minas Gerais.
In Juiz de Fora, we are building the first plant of polymetallics of Brazil, which will reduce the waste generation in 80% through zinc recycling process. The investment on this project amounts to R$ 285 millions.