2022 was a very good year for ArcelorMittal Brasil. Due to the extremely high comparison base of 2021, the year that consolidated itself as the best in its history, a significant decrease in last year's results was already expected. The influx, however, represented only a return to normality levels in the national steel market, which, however, remained at a heated pace of production and demand.

Even with the drop in apparent steel consumption in the country of 10.9% (to 23.4 million tons), the decline in domestic sales by 9.1% (to 20.2 million tons) and the shrinkage of production of crude steel by 5.8% (to 34 million tons), according to the balance of the Instituto Aço Brasil, even so, 2022 proved to be a year of excellent performance for ArcelorMittal Brasil.

The company's net revenue rose 3.8% in 2022, totaling BRL 71.6 billion. Ebitda, of BRL 14.9 billion, decreased by 26% over 2021, but still enough to reach an Ebitda margin of significant 21%. Steel production was also expressive, totaling 12.7 million tons of steel and 3.3 million tons of ore, down 5.3% and 1.4% respectively compared to the previous year.

The volume of steel sales decreased less, to 12.4 million tons (-0.9%), of which 7.4 million tons (60%) were destined for the domestic market and 5.0 million ( 40%) to the foreign market. At the end of the year, the company recorded a significant net profit of R$ 9.1 billion (-33.4%). The results include the Brazilian steel and mining operations and the operations of the subsidiaries of Acindar, in Argentina, Unicon, in Venezuela, and ArcelorMittal Costa Rica.

"These results were possible due to our quick and assertive response to periods of oscillations, quickly adjusting production to the demands of the national and international markets and implementing measures to preserve cash, reduce costs, optimize processes and increase productivity", said Jefferson De Paula (photo), president of ArcelorMittal Brasil and CEO of ArcelorMittal Aços Longos e Mineração LATAM.

Expansion investments- The company maintained its expansion investment program, the largest currently underway in the Brazilian steel sector, worth R$ 7.7 billion. The objective is to increase the installed capacity, modernize the industrial base and train the units to manufacture technological and exclusive steels, in addition to expanding the production of iron ore, between 2022 and 2025.

The company is investing BRL 2.5 billion in the Monlevade unit to almost double its production capacity, from 1.2 million to 2.2 million tons/year of crude steel. At Mina do Andrade, which supplies iron ore to the plant, production will increase from 1.5 million to 3.5 million tons/year. At the Vega plant, in São Francisco do Sul (SC), R$ 1.9 billion is earmarked for the inclusion of new items in the portfolio of high-resistance coated products for the automotive and home appliances sectors, and the forecast is that be inaugurated in the 4th quarter of this year. At Serra Azul Mine, in Itatiaiuçu, the contribution is around R$1.8 billion to increase production from 1.6 million to 4.5 million tons/year of iron ore.

At the Barra Mansa industrial plant, in Rio de Janeiro, resources amount to R$ 1.3 billion to increase steel production by 500,000 tons per year by expanding the portfolio of products and solutions aimed at industrial markets (automotive and energy) and construction. At the Sabará industrial plant, investments amount to R$ 144 million, which will allow for a 35% increase in drawing capacity.

Acquisition of CSP - In 2022, ArcelorMittal took another important step to strengthen its operations in Brazil and began the process of acquiring 100% of the shares of Companhia Siderúrgica do Pecém (CSP), in Ceará. The deal was completed in March 2023, consolidating its leadership as the largest steel producer in Brazil and Latin America. The plant has a capacity of 3 million tons/year and is strategically located in the Complexo do Pecém, with access, via conveyor belts, to the Port of Pecém. This structure will make it possible to integrate the unit into ArcelorMittal's global steel production network. R$ 11.4 billion (US$ 2.2 billion) were invested in this acquisition. "This is a strategic investment, with great synergy with the global operations of the ArcelorMittal Group. In addition, ArcelorMittal Pecém also presents the opportunity to create a new low-carbon steel production center, capitalizing on the ambition from the state of Ceará to develop a low-cost green hydrogen center", says Jorge Oliveira, CEO of ArcelorMittal Aços Planos LATAM.

Innovation - Research and development are also at the base of the company's business and sustainable growth strategy. The iNO.VC Digital Innovation Program is an unprecedented initiative in the Flat Steel segment that develops new technologies and expands those at the Tubarão (ES) and Vega (SC) units. Açolab, led by the Long Products segment, is the first innovation hub in the steel sector in the world, which manages an investment fund to accelerate startups and small innovative companies. Last year, investments were made in four startups through Açolab Ventures, a fund with international resources from the ArcelorMittal Group, chosen from among 900 projects, which totaled more than R$ 26 million. Innovation is also supported by ArcelorMittal Sistemas (developing information technology solutions) and by the ArcelorMittal Research & Development Center for South America, operating at the Tubarão unit.

ESG - Good ESG practices extend to the entire group, and not just to the structure directly linked to production and administration. ArcelorMittal is committed to leading decarbonisation in the steel industry. It is the pioneer in establishing the global commitment to be carbon neutral by 2050 and committed to leading the process of transition to a low carbon economy.

Regarding sustainable products and solutions, the steelmaker launched XCarb©, which brings together all low-CO2 manufactured steel products and initiatives, as well as broader initiatives and green innovation projects, in a single effort to leverage the low carbon economy. And, as the first product within this initiative, the company launched the 50 S XCarb© rebar on the market, produced with 100% recycled metallic material and 100% renewable energy with low carbon emissions.

The company was also the first in the country to obtain the ResponsibleSteel™ certification, an international standard of excellence, which attests to respect for local communities, natural resources, labor relations and human rights throughout the production chain. In 2022, the ArcelorMittal Tubarão units, in Espírito Santo, and ArcelorMittal Monlevade, in Minas Gerais, were certified. Last month, it was the turn of the Vega unit, in Santa Catarina. By the end of 2024, the company hopes to have all its units certified.

ArcelorMittal has a Diversity & Inclusion Program, launched in 2019. The program focuses on four dimensions: Gender Equity, Racial Diversity, People with Disabilities and LGBTI+. The company has a goal of having 25% of women among leaders by 2030.

Social investments - Last year, the ArcelorMittal Foundation invested R$73 million, including its own resources and incentives, primarily in the areas of education, culture and sports, in projects in which 2.9 million people participated. In the area of Education, the STEAM League was launched, which prioritizes the Steam methodological approach (Science, Technology, Engineering, Arts and Mathematics), through project-based learning.

The company is the largest investor in sports projects in Minas Gerais and is among the five largest in the country, with resources from the Incentive Laws. In addition to the initiatives carried out in the communities, the company sponsors Sada Cruzeiro, Corredores de Aço, the Stock Car Pro Series and the "Juntos Nessa Onda" project, by Instituto Neymara Carvalho, offering free bodyboarding classes for children in Espírito Santo. In addition, it sponsors the Palácio das Artes (the largest cultural center in Minas Gerais); Grupo Corpo, one of the most important Brazilian contemporary dance companies; and is a partner of the Minas Gerais Philharmonic Orchestra in the Fora de Série project and maintains the Museu do Amanhã, in Rio de Janeiro.