Steel giant ArcelorMittal’s (MT - Analyst Report) operations in Luxembourg, ArcelorMittal Dommeldange, announced that it has partnered with local wind tower maker Smart Wind Integrated Renewables Letzebuerg (Swirl) to manufacture a new generation of vertical axis wind turbine called Estreya L2.
Estreya L2 is available in a broad range of colors and is fully recyclable. The turbine has a simple yet solid design including a low number of components which makes it cost effective. Estreya L2 can also be customized to bear the logos of the company. The turbines help reduce noise levels which enable them to be used in urban environments. The turbines can be installed on buildings or on specific towers.
All the mechanical components of Estreya L2 will be produced at the Luxembourg site. The complex process of handling the assembly will also be done at the site. ArcelorMittal, in collaboration with Swirl, will improve the turbine, both in terms of design and quality. The company’s Long Carbon Europe site will help it to achieve the same. To further the partnership, ArcelorMittal’s technical and commercial teams are involved in an exercise to analyze whether lattice towers can be used to replace existing ones. They will utilize the steel produced in ArcelorMittal Rodange site, also located in Luxembourg.
Few days ago, ArcelorMittal announced that it plans to restart an expansion project at its Monlevade and Juiz de Fora sites in Brazil. The project expansion is expected to increase the annual production capacity from 3.75 million tons to 4.9 million tons.
Monlevade is expected to produce 1.05 million tons per year of coil on capital investment of $140 million. The expanded wire rod from Monlevade is expected to enhance supply of added value products mainly to the domestic construction and automotive industries.
On the other hand, Rebar capacity at MT’s Juiz de Fora site will be increased from the current 50,000 to 400,000 tons a year. Also, the site’s melt shop will produce an extra 200,000 tons of billets per year using its new ladle and new sixth strand in the continuous caster. Additional rebar at the Juiz de Fora site is expected to go into downstream cut and bend operations for civil construction end users.
ArcelorMittal currently maintains a Zacks Rank #3 (Hold).
Other companies in the steel industry with favorable Zacks Rank are Nippon Steel & Sumitomo Metal Corporation (NSSMY), Ternium S.A. (TX - Snapshot Report) and Kobe Steel Ltd. (KBSTY). While Nippon Steel maintains a Zacks Rank #1 (Strong Buy), Kobe Steel and Ternium each hold a Zacks Rank #2 (Buy).