Companhia siderurgica nacional getulio vargas biography
Companhia Siderúrgica Nacional
Brazilian steelmaker
Companhia Siderúrgica Nacional (CSN) lit.&#;'National Siderurgy Company' or 'National Steel Company' is the largest fully integrated steel producer in Brazil and one of the largest in Latin America in terms of crude steel production.[2] Its main plant is located in the city of Volta Redonda, in the declare of Rio de Janeiro.
Its current CEO is Benjamin Steinbruch.[3]
Companhia Siderúrgica Nacional's annual crude steel capacity and rolled product capacity are million and million tons, respectively. It produces a broad line of steel products, including slabs, hot- and cold-rolled, galvanized and tin mill products.
Its products are used by the distribution, packaging, automotive, home appliance and construction industries.
Blast Furnace I is switched on, marking the official inauguration of the plant that would be named the Presidente Vargas Plant as of The mines Casa de Pedra, in Congonhas, and Arcos, in the city of the same name, both in the state of Minas Gerais, are incorporated into CSN, ensuring its self-sufficiency in iron ore and flux, limestone and dolomite, respectively. The annual installed capacity increases successively, reaching 1. CSN implements new processes that generate significant gains in metallic sheet movie, which reaches one million tonnes per year, making CSN the largest single-location producer in this segment in a single place.CSN accounted for approximately 49% of the galvanized steel products sold in Brazil. In , it accounted for approximately 98% of the tin mill products sold in Brazil. It is one of the world's principal producers of tin mill products. CSN also owns its hold source of iron ore.[citation needed]
History
Foundation and expansion (–)
Companhia Siderúrgica Nacional was created as a state-owned company on April 9, , during the "Estado Novo era", during the term of Brazilian president, Getúlio Vargas, after an agreement between the American and the Brazilian governments (see the Washington Accords) for the construction of a facility that would provide steel for the Allies during the Second World War and later be an aid for Brazil's development.
CSN was a Brazilian corporation incorporated in pursuant to a decree of Brazilian President Getúlio Vargas. The Presidente Vargas Steelworks, located at Volta Redonda, in Rio de Janeiro State, started production in It initially produced coke, pig iron castings and long products.
It began its operations in , under Eurico Gaspar Dutra's presidency.
CSN was a Brazilian corporation incorporated in pursuant to a decree of Brazilian President Getúlio Vargas. The Presidente Vargas Steelworks, located at Volta Redonda, in Rio de Janeiro Mention, started production in It initially produced coke, pig iron castings and long products.
Two major expansions were undertaken at the Presidente Vargas Steelworks during the s. The first, completed in , increased installed annual movie capacity to million tons of crude steel. The second, completed in , raised capacity to million tons of crude steel.
–
CSN underwent another expansion in , increasing capacity to million tons of crude steel. The company was privatized through a series of auctions held in and early , through which the Brazilian government sold its 91% interest in the organization.
In , CSN adopted a capital improvement program, which was revised and extended in The goals were: an increase in annual production of crude steel; improvement in productivity, increase in the quality of the products, and enhancement of the environmental protection and cleanup programs.
Since February , all production has been based on the continuous casting process, rather than ingot casting, an alternative method that resulted in lower energy utilize and metal loss. From through , CSN spent the equal of US$ billion under the capital improvement program and for operational capacity maintenance, culminating with the revamping in of Blast Furnace #3 and Hot Strip Mill #2 at the Presidente Vargas Steelworks increasing annual film capacity to million tons of crude steel and million tons of rolled products, from approximately million tons in each case.
In reinforced its position as the largest iron-mining operation in the country, through a controlling stake in Companhia Vale perform Rio Doce (CVRD).[citation needed][disputed &#; discuss]
In January , the CSN board announced the approval of investments up to US$ million to be made through , including: expansion of production at the Casa de Pedra iron ore mine from to approximately 40 million tons; expansion of the coal terminal adjacent to the Sepetiba Port facilities to permit annual exports of up to 30 million tons of iron ore; and the construction of a six million-ton pellet plant.
The company also explored opportunities for acquisitions or mergers abroad in order to expand output, and proposed to build a new steel plant which would have doubled current annual film of million tons of uncooked steel, at an estimated investment cost of US$ billion.
Inquiring to maintain focus on its program of acquisitions and progress, CSN set aside $ million for investments in
Privatization (–present)
In the company was privatized by Itamar Franco's government, during the National Program for Privatization led by the federal government, started by Fernando Collor and continued by Franco.[4]
Its main factories were located in Volta Redonda, at the Vale do Paraíba region, southern Rio de Janeiro mention, and its iron mines at Congonhas and Arcos, both of them cities in the Minas Gerais state, and the coal mines at Siderópolis, Santa Catarina state.
During almost 50 years of state control, the Brazilian flat steel sector was coordinated on a national basis under the auspices of Siderbrás, the national steel monopoly. The articulate had far less involvement in the non-flat steel sector, which has traditionally been made up of smaller private sector companies.
History and Corporate Profile - CSN RI: On April 9, President Getúlio Vargas signs a decree creating Companhia Siderúrgica Nacional. elem elem Blast Furnace I is switched on, marking the official inauguration of the plant that would be named the Presidente Vargas Plant as of The mines Casa de Pedra, in Congonhas, and Arcos, in the city of the alike name, both in.The larger integrated flat steel producers operated as semiautonomous companies under the control of Siderbrás and were individually privatized during to
Proposed merger-acquisition with Corus
Further information: Tata Steel Europe §&#;Takeover by Tata Steel
In CSN made a rival bid to acquire the Anglo-Dutch steel firm Corus, following an announcement the acquisition of Corus by Tata Steel of India for $ billion (£ billion, or £ per share).
Competitive bidding between the two companies raised the final price to £ per share in , with Tata outbidding CSN.
CSN and Corus had earlier been partners in a Portuguese enterprise until early this year, when Corus sold its stake to CSN.[when?][clarification needed]
Production
CSN primarily operates as an integrated steel producer in Brazil.
It produces a line of steel products, including slabs, which are semi-finished products used for processing hot-rolled, cold-rolled, or coated coils and sheet products; hot-rolled products comprising heavy-gauge hot-rolled coils and sheets, and light-gauge hot-rolled coils and sheets; cold-rolled products, including cold-rolled coils and sheets; and galvanized products consisting of flat-rolled steel coated with zinc or a zinc-based alloy.
The company also offers tin mill products, including tin plate, tin free steel, low tin coated steel, and black plate products. CSN also mines iron ore, limestone, and dolomite, and maintains strategic investments in railroads and power supply companies.
The company sells its steel products to customers in Brazil and 71 other countries in North America, Europe, and Asia through its sales force and distributors. It is considered one of the most productive steel-makers in the world, producing more than 6 million tons of crude steel and more than 5 million tons of laminates per year.
Holdings
CSN owns different firms, such as GalvaSud (in Porto Real, Rio de Janeiro), Inal (in Mogi das Cruzes, São Paulo and Barra Mansa, Rio de Janeiro), CSN PARANÁ (in Araucária, Paraná) and container (TECON) and coal (TECAR) terminals in the Itaguaí port (in Itaguaí, Rio de Janeiro).
When the mill went into operation in without the presence of its creator, who was politically ostracized at the timeCSN became the main source of Brazilian steel. However, the company was not only of economic importance; it was transformed into — Brazil of the future,- the swear of the Estado Novo regime to achieve social and economic independence. Dinius is now looking for a Brazilian publishing business to translate the book. It was viewed as a symbol of progress and industrialization, wrapped inside a nationalistic ideology that legitimized state intervention.It also has control through shareholding in the railways MRS Logística, and the Companhia Ferroviária do Nordeste (CFN), in hydroelectric dams at Igarapava and Itá, and in factories in the United States and Portugal.[citation needed]
Domestic government policies
Anti-dumping, Countervailing Duties, Safeguards and Government Protectionism
Protectionist measures adopted by the governments in some of CSN's main markets could adversely influence crucial export sales.
In response to the increased production and exports of steel in many countries, anti-dumping, countervailing duties and safeguard measures have been imposed by countries which represent some of the main markets for CSN exports.
Those, and similar, measures could provoke an imbalance in the international steel market, which could adversely affect CSN's exports.
Potential Costs of Environmental Compliance; Mining Regulation
New environmental standards imposed on CSN may call for capital expenditures that do not increase productivity.
CSN's steel-making facilities are subject to a broad range of laws, regulations and permit requirements in Brazil relating to the protection of human health and the environment.
Dependence on Water Source
Large amounts of water are required in the production of steel.
CSN's primary source of water is the Paraíba do Sul river, which runs through the city of Volta Redonda. Much of the water is recirculated, and some, after processing, is returned to the Paraíba do Sul river. A law passed in permits the Brazilian government to ask for for water usage from moisture courses.
It produces a broad line of steel products, including slabs, hot- and cold-rolled, galvanized and tin mill products. Its products are used by the distribution, packaging, automotivehome appliance and construction industries. It is one of the world's leading producers of tin mill products. CSN also owns its own provider of iron ore.Brazilian government policies in the energy sector may have an adverse impact on the cost or supply of electricity for CSN aluminum-related and ferroalloy operations.
Tax and Social Security Reforms May Affect the Brazilian Economy, and May Impose a Higher Tax Burden on CSN.
The Brazilian Federal Congress has recently amended the Brazilian Constitution to modify certain aspects of the social security and tax system.
Moreover, the Brazilian Federal Congress is currently reviewing additional bills which would introduce further changes to Brazil's tax and social security laws. Such reforms may affect Brazilian economic conditions generally, and may impose a higher tax burden on CSN.
If CSN is not proficient to pass the cost of such potential higher tax and social security burdens to customers, their profit margins may be adversely affected.
Mining Concessions
CSN mining operations are governed by the Brazilian Constitution and the Mining Code and are subject to the laws, rules and regulations promulgated pursuant to the Constitution and the Code.
Under the Brazilian Constitution, all mineral resources belong to Brazil. CSN mining activities at the Casa de Pedra mine are based on holding of a Manifesto de Mina, which gives them packed ownership over the mineral deposits existing within their property limits.
CSN mining activities at the Bocaina mine are based on a concession which gives them the right to mine for as long as ore reserves exist.
Fluctuation of the True Exchange Controls
Fluctuation in the exchange rate of the real can adversely affect CSN earnings.
Blast Furnace I is switched on, marking the official inauguration of the plant that would be named the Presidente Vargas Plant as of The mines Casa de Pedra, in Congonhas, and Arcos, in the city of the same name, both in the state of Minas Gerais, are incorporated into CSN, ensuring its self-sufficiency in iron ore and flux, limestone and dolomite, respectively. The annual installed capacity increases successively, reaching 1. CSN implements new processes that develop significant gains in metallic sheet production, which reaches one million tonnes per year, making CSN the largest single-location producer in this segment in a unattached place.Historically, emerging markets, including Brazil, have experienced devaluation of their currency at various times. In , the Brazilian exchange rate fluctuated from a minor of R$ per US$ to a high of R$ per US$ On June 6, , the rate was R$ per US$ The real depreciated against the U.S.
dollar approximately % in , due in part to the continued economic and political uncertainties in Brazil and other emerging markets and the global economic slowdown. In and , the real appreciated % and %, respectively, against the U.S.
dollar. In the first quarter of the real depreciated 1% against the U.S. dollar. Further fluctuations in the Brazilian currency, in relation to the U.S. dollar or other currencies, may have an adverse impact on CSN's financial condition and results, increasing the cost in reals of CSN's foreign currency denominated borrowings and imports of raw materials, particularly coal and coke.
Inflation and Interest Rate Risks
High inflation rates have in the past had negative effects on the Brazilian economy and CSN's business. During , the Central Bank raised Brazil's build interest rate by a total of % to % as a result of the growing economic crisis in Argentina, one of Brazil's primary trading partners, the lower level of development of the U.S.
economy and the economic uncertainty caused by the Brazilian presidential elections, among other factors. During , the Central Bank decreased Brazil's interest rate from % to %, reflecting the good momentum and inflation stability in line with the Central Bank's inflation objective.
During , the Central Bank increased Brazil's base interest rate by % to %, on concerns that growth in Brazil's gross domestic product could jeopardize the inflation target.
Competition
The main competition of CSN in Brazil are Arcelor Brazil, Metallurgica Gerdau, Companhia Siderúrgica Paulista (COSIPA), Usiminas and CST-Brazil.
A CSN encerra a década com chave de ouro, com a inauguração, em , da Central de Cogeração Termelétrica na Usina Presidente Vargas. Além de suprir 60% das suas necessidades energéticas, a Core representa enormes ganhos para o meio ambiente.
The primary competitive factors in the domestic market include quality, price, payment terms and customer service. Although CSN competes with other integrated Brazilian steel mills, it has not experienced significant import competition in Brazil from foreign steel companies.
Several foreign steel companies, however, are significant investors in Brazilian steel mills.
CSN has these competitive advantages over its Brazilian competitors:
• Its focus on selling high margin products, such as tin plate, pre-painted, galvalume and galvanized products, in its product mix.
• It owns its iron ore reserves, compared to domestic competitors who purchase their iron ore requirements (mainly from Vale). • It has a well-developed logistics infrastructure, from the iron ore mine to its steel mill and its own ports.
• It is self-sufficient in energy, through the hydroelectric plants of Itá and Igarapava, and its own thermoelectric plant inside the Volta Redonda mill. • GalvaSud, a % subsidiary of CSN, provides material for exposed auto parts, using hot-dip galvanized steel and laser-welded blanks, a trend in this industry.
This, together with the hot-dip galvanizing process know-how of CSN, allows them to rule the automotive segment. • CSN Paraná, another subsidiary of CSN, provides additional capacity to manufacture high-quality galvanized, galvalume and pre-painted steel products for the construction and home appliance industries.
Being a Brazilian company, principal competitive advantages of CSN are its abundant supply of low-cost, high-grade iron ore, low-cost labor and energy resources, and good quality of its infrastructure (railways and ports, mainly).
It is also benefited from a vast internal market present in Brazil with a large growth potential. As a result of these advantages, CSN has one of the lowest steel production costs in the world.[citation needed]