CSN-Parana ramp-up depends on market

The ramping up of the CSN-Parana operation, formerly known as CISA and owned by Brazilian flat steelmaker CSN (NYSE: SID), will depend on the market, a company official told BNamericas. The company has invested US$255mn in the plant, in Araucaria in southern Brazil's Parana state, which is slated to begin production this month. "Initially, we will be sending cold-rolled coils from Volta Redonda [mill] for galvanization and pre-painting the product. Then we'll send hot-rolled coils for CISA's cold-rolling mill that will begin operations in November," said Albano Chagas Vieira, CSN's head of operations. The plant's output is destined for both the domestic market and export, mainly for the automotive and domestic appliance industries. "The unit will be the first in Brazil to produce galvalume - zinc with aluminum. It is a galvanized product with greater resistance to corrosion," the company executive said. CSN-Parana has installed capacity of 400,000t/y, and output of specific products can be adapted to suit market conditions. "It can produce 100% galvalume, or 60% galvalume and 40% galvanized products. Production is flexible according to market demands," Vieira said. Local railroad concessionaire and logistics company ALL-Delara said it recently completed a 2mn reais (US$700,000) investment to install a rail terminal inside CSN-Parana's plant. The rail company will be responsible for all of the inbound traffic of rolled steel coming from CSN's plant in Volta Redonda, Rio de Janeiro. Shipments are forecast to reach 150,000t by the end of this year and 560,000t in 2004. Rio de Janeiro-based CSN has installed capacity of 6Mt/y of crude steel.