Sao Paulo (Platts)--26Feb2013/610 pm EST/2310 GMT
Argentina industry minister Debora Giorgi said Tuesday that plans for steel producer Laminados Industriales, a subsidiary of Italy-based AFV Beltrame Group, to produce rails will reduce the country's rail imports by $200 million over an unspecified period of time. Laminados Industriales' second phase, to start up by the end of 2014, includes the construction of two sections mills with a total production capacity of 300,000 mt/year. The company has not revealed its forecast for rail and section production from the plant. A final phase, expected to be completed within five years, will enable the plant to produce slabs and billets. The phases together will require a total investment of 500 million Argentinean pesos ($99 million). "These initiatives are part of the plan of import substitution and development of suppliers to the national rail network, and to regain our productive sovereignty," Giorgi said. Laminados Industriales inaugurated it first phase, a 350 million peso plate mill, in November, with an installed capacity of 300,000 mt/year, according to company President Jose Pablo de Martino. "Laminados Industriales will (initially) produce 130,000 mt to 150,000 mt of heavy plates (annually)," Martino said. The company is producing plate thicknesses of 6 mm to 100 mm. Laminados Industriales is based in the city of Villa Constitucion, Santa Fe province.--Guilherme Baida, guilherme_baida@platts.com --Edited by Jason Lindquist, jason_lindquist@platts.com