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March 10, 2008 |
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USINAS SIDERURGICAS: Extends Electric Supply Pact with Cemig Usinas Siderurgicas de Minas Gerais SA aka Usiminas has extended its BRL1.90 billion electric energy supply contract with Companhia Energetica de Minas Gerais aka Cemig through 2014. Business News Americas relates that the extension of the contract ensures power supply so that Usiminas can carry out its US$9.0 billion investment plan aimed at adding six million tons of steel output capacity at its Ipatinga and Cubatao mills. About Cemig Companhia Energetica de Minas Gerais -- http://www.cemig.com.br/ -- is one of the largest and most important electric energy utilities in Brazil due to its strategic location, its technical expertise and its market. Cemig's concession area extends throughout nearly 96.7% of the State of Minas Gerais, Brazil. Cemig owns and operates 52 power plants, of which six are in partnership with private enterprises, relying on a predominantly hydroelectric energy matrix. Electric energy is produced to supply more than 17 million people living in the state's 774 municipalities. In addition to those 52 plants, another three are currently under construction. Cemig is also active in several other states, through ventures for the generation or the commercialization of energy in these Brazilian states: in Santa Catarina (generation), Rio de Janeiro (commercialization and generation), Espirito Santo (generation) and Rio Grande do Sul (commercialization). About Usiminas Headquartered in Minas Gerais, Brazil, Usinas Siderurgicas de Minas Gerais SA is among the world's 20 largest steel manufacturing complexes, with a production capacity of approximately 10 million tons of steel. Usiminas System companies produces galvanized and non-coated flat steel products for the automotive, small and large diameter pipe, civil construction, hydro-electronic, rerolling, agriculture, and road machinery industries. Brazil consumes 80% of its products and the company's largest export markets are the US and Latin America. The company also sells in China and Japan. * * * As reported in the Troubled Company Reporter-Latin America on Feb. 5, 2008, Moody's Investors Service assigned a Ba1 local currency rating and an Aa1.br rating on its Brazilian national scale to the BRL500 million non-guaranteed subordinated debentures due 2013 to be issued by Usinas Siderurgicas de Minas Gerais S.A. (aka Usiminas). Net proceeds from the debentures issuance will be used to partially fund the company's capex program. The rating outlook is stable. As reported in the Troubled Company Reporter-Latin America on Jan. 3, 2007, Standard & Poor's Ratings Services revised its outlook on Brazil-based steelmaker Usinas Siderurgicas de Minas Gerais S.A., aka Usiminas, to positive from stable. Standard & Poor's also it affirmed its 'BB+' local and foreign currency corporate credit ratings on Usiminas. |
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