SAO PAULO (AFX) - Arcelor Brazilian stainless steel unit Acesita plans to invest 95 mln reals (45 mln usd) in order to triple its production capacity for electrolytic steels to 300,000 tonnes a year by next year, chairman Jean-Philippe Andre Demael said.
The company also announced a net profit of 126 mln reals (60 mln usd) in the first quarter of 2006, down 28.9 pct from 177 mln reals a year earlier.
Sales totaled 696 mln reals, a 23.6 pct decline from 912 mln reals in the same period of last year.
Demael said the second quarter is expected to be better than the first, thanks to strong demand and an increase in stocks. However, prospects for the second half are uncertain due to an expected decline in the price of nickel and the 'challenge' posed by the sharp rise in the real, he said. newsdesk@afxnews.com afp/jlw COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited