Created in July 2008, Votorantim Steel (VS) reflects the Group's repositioning in the steel business, growth in the steel market, its importance on the domestic and international scene, and specific characteristics of the sector, such as technology and product diversity. Split off from Votorantim Metals, the Business Unit started with operations in three countries – Argentina, Brazil and Colombia – and installed capacity of 2.45 million tons per year.

VS controls three steel plants in Latin America, and a fourth is under construction in Brazil. In addition to its own plants, it holds 13% of the voting capital of Usiminas (flat steel). The oldest facility is Siderúrgica Barra Mansa (Rio de Janeiro), which began operations in 1937. The other two plants – Acerías Paz del Río in Colombia, and AcerBrag in Argentina – were acquired in 2007. The steel plant that was under construction, and which began operating in September 2009, is located in the municipality of Resende (Rio de Janeiro), and its production capacity is 1.03 million tons of long steel.

In addition to producing and commercializing steel, VS operates iron and coal mines, and it develops and manages eucalyptus forests to produce the charcoal used in producing pig iron, which is one of the main raw materials used in steel manufacturing.

Products: long steel – for civil construction (annealed wire, steel frameworks, electro-welded wire mesh, and CA 50 and CA 60 rods), and mechanical construction (flat bars, angle bars, wire rods, Profile I, Profile U and mechanical rounders); flat steel (hot reels and plates, products only available from Acerías Paz del Río – Colombia).

Brands: Votoraço (Brazil), AcerBrag (Argentina), Acerías Paz del Río (Colombia).

Employees: 2,500

Productive assets:

• Siderúrgica Barra Mansa: the facility where Votorantim began its steel operations. Its production capacity is 750,000 tons of steel per year;
• Siderúrgica Resende: in operation since September 2009, its annual capacity is 1.03 million tons of long steel. Equipped with the most modern equipment in steel making and lamination in the world, the new plant seeks to become an international model of sustainability;
• Acerías Paz del Río: an integrated steel plant that combines steel manufacturing and mining (iron, coal and limestone). Acquired in 2007, it is the second largest steel plant in Colombia with capacity to produce 450,000 tons per year of long and flat steel;
• AcerBrag: founded in Bragado at the start of the 1960s, it was acquired in 2007 and is the second largest producer of long steel in Argentina – 250,000 tons/year.

Production capacity

• Brazil: 750,000 tons/year (Barra Mansa) and 1.03 million tons/year (Resende);
• Argentina: 250,000 tons/year (AcerBrag);
• Colombia: 450,000 tons/year (Acerías Paz del Río).

Performance in 2008

• Net Revenues: R$ 2,2 million;
• EBITDA*: R$ 0,6 billion;
• Investments: R$ 1.7 billion (in Capex, not including acquisitions or investments in companies in which it has ownership.

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*EBITDA: earnings before interest, taxes, depreciation and amortization, or income before interest, taxes (on income), depreciation and amortization.