CSN-Parana starts up de-scaling operations

Brazilian steelmaker CSN-Parana has begun production of de-scaled rolled coils, a spokesperson from parent company Rio de Janeiro-based flat steelmaker CSN (NYSE: SID) confirmed. The product line has a capacity to process 550,000t/y, of which 220,000t/y is slated for sale and the remaining 330,000t for further processing of pre-painted, zinc-coated and galvalume products. The unit, in southern Brazil's Parana state, will market its products mainly for the automobile and domestic appliance markets, in the form of coils, plates and blanks. The pre-painted product line is producing at 30-40% of capacity because domestic demand is at 60,000t/y but with a potential to reach 200,000t/y in two years. "Our forecast is to reach maximum capacity of this line in two years," Wilson Carnevalli, the president of CSN-Parana, was quoted as saying by AE-Setorial news service. Revenue from the unit is expected to reach US$280mn-US$300mn a year. CSN invested a total of US$325mn in CSN-Parana.