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40-416: Companhia Siderúrgica Nacional's annual crude steel capacity and rolled product capacity are 5.6 million and 5.1 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. CSN accounted for approximately 49% of

80-618: A Portuguese venture until early this year, when Corus sold its stake to CSN. 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

120-542: A broad range of laws, regulations and permit requirements in Brazil relating to the protection of human health and the environment. Large amounts of water are required in the production of steel. CSN's principal 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 1997 permits

160-420: A high of R$ 3.9552 per US$ 1.00. On June 6, 2005, the rate was R$ 2.4576 per US$ 1.00. The real depreciated against the U.S. dollar approximately 2.3% in 2002, due in part to the continued economic and political uncertainties in Brazil and other emerging markets and the global economic slowdown. In 2003 and 2004, the real appreciated 18.2% and 8.1%, respectively, against the U.S. dollar. In the first quarter of 2005

200-480: A slight metallic taste. The life expectancy of galvanized piping is about 40–50 years, but it may vary on how well the pipes were built and installed. Pipe longevity also depends on the thickness of zinc in the original galvanizing, which ranges on a scale from G01 to G360. Private sector The private sector is the part of the economy which is owned by private groups, usually as a means of establishment for profit or non profit , rather than being owned by

240-580: A trend in this industry. This, together with the hot-dip galvanizing process know-how of CSN, allows them to dominate the automotive segment. • CSN Paraná, another subsidiary of CSN, provides additional capacity to produce 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

280-456: 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 100% subsidiary of CSN, provides material for exposed auto parts, using hot-dip galvanized steel and laser-welded blanks,

320-497: 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

360-421: 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. Galvanized Galvanization ( also spelled galvanisation ) is the process of applying a protective zinc coating to steel or iron , to prevent rusting . The most common method is hot-dip galvanizing , in which

400-489: Is also used for making steel frames as a basic construction material for steel frame buildings. In the early 20th century, galvanized piping swiftly took the place of previously used cast iron and lead in cold-water plumbing . Practically, galvanized piping rusts from the inside out, building up layers of plaque on the inside of the piping, causing both water pressure problems and eventual pipe failure. These plaques can flake off, leading to visible impurities in water and

440-526: Is applied by electrogalvanizing . The hot-dip process generally does not reduce strength to a measurable degree, with the exception of high-strength steels where hydrogen embrittlement can become a problem. Thermal diffusion galvanizing, or Sherardizing , provides a zinc diffusion coating on iron- or copper-based materials. Galvanized steel can last for many decades if other supplementary measures are maintained, such as paint coatings and additional sacrificial anodes . Corrosion in non-salty environments

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480-491: Is caused mainly by levels of sulfur dioxide in the air. This is the most common use for galvanized metal; hundreds of thousands of tons of steel products are galvanized annually worldwide. In developed countries, most larger cities have several galvanizing factories, and many items of steel manufacture are galvanized for protection. Typically these include street furniture, building frameworks, balconies, verandahs, staircases, ladders, walkways, and more. Hot dip galvanized steel

520-564: Is considered one of the most productive steel-makers in the world, producing more than 6 million tons of raw steel and more than 5 million tons of laminates per year. 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

560-953: 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. It began its operations in 1946, under Eurico Gaspar Dutra 's presidency. CSN was a Brazilian corporation incorporated in 1941 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 1946. It initially produced coke, pig iron castings and long products. Two major expansions were undertaken at

600-452: The Bocaina mine are based on a concession which gives them the right to mine for as long as ore reserves exist. Fluctuation in the exchange rate of the real can adversely affect CSN earnings. Historically, emerging markets, including Brazil, have experienced devaluation of their currency at various times. In 2002, the Brazilian exchange rate fluctuated from a low of R$ 2.2709 per US$ 1.00 to

640-541: The United States , the private sector is wider, and the state places fewer constraints on firms. In countries with more government authority, such as China , the public sector makes up most of the economy. States legally regulate the private sector. Businesses operating within a country must comply with the laws in that country. In some cases, usually involving multinational corporations that can pick and choose their suppliers and locations based on their perception of

680-670: The continuous casting process, rather than ingot casting, an alternative method that resulted in lower energy use and metal loss. From 1996 through 2002, CSN spent the equivalent of US$ 2.4 billion under the capital improvement program and for operational capacity maintenance, culminating with the revamping in 2001 of Blast Furnace #3 and Hot Strip Mill #2 at the Presidente Vargas Steelworks increasing annual production capacity to 5.6 million tons of crude steel and 5.1 million tons of rolled products, from approximately 5.0 million tons in each case. In 2005 reinforced its position as

720-552: The government . The private sector employs most of the workforce in some countries. In private sector, activities are guided by the motive to earn money, i.e. operate by capitalist standards. A 2013 study by the International Finance Corporation (part of the World Bank Group ) identified that 90 percent of jobs in developing countries are in the private sector. In free enterprise countries, such as

760-711: 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 full ownership over the mineral deposits existing within their property limits. CSN mining activities at

800-630: 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 able to pass the cost of such potential higher tax and social security burdens to customers, their profit margins may be adversely affected. CSN mining operations are governed by

840-584: The Brazilian economy and CSN's business. During 2002, the Central Bank raised Brazil's base interest rate by a total of 7.5% to 26.5% as a result of the growing economic crisis in Argentina , one of Brazil's primary trading partners, the lower level of growth of the U.S. economy and the economic uncertainty caused by the Brazilian presidential elections, among other factors. During 2003, the Central Bank decreased Brazil's interest rate from 26.5% to 16.5%, reflecting

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880-417: The Brazilian government sold its 91% interest in the company. In 1993, CSN adopted a capital improvement program, which was revised and extended in 1995. 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 1996, all production has been based on

920-468: The Brazilian government to charge for water usage from water courses. 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

960-581: The Itaguaí port (in Itaguaí , Rio de Janeiro). 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 . Protectionist measures adopted by the governments in some of CSN's main markets could adversely affect crucial export sales. In response to

1000-448: The Presidente Vargas Steelworks during the 1970s. The first, completed in 1974, increased installed annual production capacity to 1.6 million tons of crude steel. The second, completed in 1977, raised capacity to 2.4 million tons of crude steel. CSN underwent another expansion in 1989, increasing capacity to 4.5 million tons of crude steel. The company was privatized through a series of auctions held in 1993 and early 1994, through which

1040-456: 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 state had far less involvement in the non-flat steel sector, which has traditionally been made up of smaller private sector companies. The larger integrated flat steel producers operated as semiautonomous companies under

1080-561: 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. Its main factories were located in Volta Redonda, at the Vale do Paraíba region, southern Rio de Janeiro state, and its iron mines at Congonhas and Arcos, both of them cities in the Minas Gerais state, and

1120-461: 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 production of 5.8 million tons of raw steel, at an estimated investment cost of US$ 2.6 billion. Seeking to maintain focus on its program of acquisitions and growth, CSN set aside $ 520 million for investments in 2005. In 1993

1160-507: The control of Siderbrás and were individually privatized during 1991 to 1993. In 2006 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 $ 8.1 billion (£4.5 billion, or £4.55 per share). Competitive bidding between the two companies raised the final price to £6.08 per share in 2007, with Tata outbidding CSN. CSN and Corus had earlier been partners in

1200-681: 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

1240-525: The environment than the minimum that is legally required of them. There can be negative effects from the private sector. In the early 1980s, the Corrections Corporation of America pioneered the idea of running prisons for a profit. Today, corporate-run prisons hold eight percent of America's inmates. Since it is from the private sector, their main priority is not rehabilitation, but profit. This has resulted in many human rights violations across

Companhia Siderúrgica Nacional - Misplaced Pages Continue

1280-451: The galvanized steel products sold in Brazil. In 2004, it accounted for approximately 98% of the tin mill products sold in Brazil. It is one of the world's leading producers of tin mill products. CSN also owns its own source of iron ore. Companhia Siderúrgica Nacional was created as a state-owned company on April 9, 1941, during the " Estado Novo era ", during the term of Brazilian president, Getúlio Vargas , after an agreement between

1320-468: The good momentum and inflation stability in line with the Central Bank's inflation target. During 2004, the Central Bank increased Brazil's base interest rate by 1.25% to 17.75%, on concerns that growth in Brazil's gross domestic product could jeopardize the inflation target. The main competition of CSN in Brazil are Arcelor Brazil, Metallurgica Gerdau , Companhia Siderúrgica Paulista (COSIPA) , Usiminas and CST-Brazil. The primary competitive factors in

1360-511: 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. New environmental standards imposed on CSN may require capital expenditures that do not increase productivity. CSN's steel-making facilities are subject to

1400-648: The largest iron-mining operation in the country, through a controlling stake in Companhia Vale do Rio Doce (CVRD). In January 2004, the CSN board announced the approval of investments up to US$ 820 million to be made through 2007, including: expansion of production at the Casa de Pedra iron ore mine from 15.5 to approximately 40 million tons; expansion of the coal terminal adjacent to the Sepetiba Port facilities to enable annual exports of up to 30 million tons of iron ore; and

1440-563: The parts are coated by submerging them in a bath of hot, molten zinc. The zinc coating, when intact, prevents corrosive substances from reaching the underlying iron. Additional electroplating such as a chromate conversion coating may be applied to provide further surface passivation to the substrate material. The process is named after the Italian physician, physicist, biologist and philosopher Luigi Galvani (9 September 1737 – 4 December 1798). The earliest known example of galvanized iron

1480-424: 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 effect 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 . High inflation rates have in the past had negative effects on

1520-458: The regulatory environment, local state regulations have resulted in uneven practices within one company. For example, workers in one country may benefit from strong labour unions , while workers in another country have very weak laws supporting labour unions, even though they work for the same employer. In some cases, industries and individual businesses choose self-regulation by applying higher standards for dealing with their workers, customers, or

1560-548: Was discovered on 17th-century Indian armour in the Royal Armouries Museum collection in the United Kingdom. The term "galvanized" can also be used metaphorically of any stimulus which results in activity by a person or group of people. In modern usage, the term "galvanizing" has largely come to be associated with zinc coatings, to the exclusion of other metals. Galvanic paint, a precursor to hot-dip galvanizing ,

1600-425: Was patented by Stanislas Sorel , of Paris , on June 10, 1837, as an adoption of a term from a highly fashionable field of contemporary science, despite having no evident relation to it. Hot-dip galvanizing deposits a thick, robust layer of zinc iron alloys on the surface of a steel item. In the case of automobile bodies, where additional decorative coatings of paint will be applied, a thinner form of galvanizing

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