Belgo proceeds with asset restructuring

Brazilian long steelmaker Belgo-Mineira has increased its capital in subsidiary BMP Siderurgica, which in turn will assume control over some of Belgo's mills, the company told the Sao Paulo stock market, Bovespa. "The capital [in BMP] will be increased by 1.1bn reais [currently US$386mn], that is, it will go to more than 1.5bn reais [in total]," a Belgo spokesperson told BNamericas. Besides Belgo's mill in Juiz de Fora, a new welded mesh and truss girder factory in Sao Paulo, and distribution centers, BMP will also take control of mini mills Piracicaba and Vitoria as well as Belgo's stake in Argentine steelmaker Acindar. BMP will focus on the manufacture and sale of concrete-reinforcing bars and other products for the civil construction industry, while the parent company will remain with the operations of Sabara and Joao Monlevade mills. Restructuring the assets will allow Belgo to cut its tax bill. "The changes are positive for the steel company but they have not said how much the tax savings will be," Cristiane Vianna, a steel analyst from Espirito Santo Securities, told BNamericas. Belgo has installed capacity of 3.2Mt/y of rolled products in Brazil.