Global steel giant ArcelorMittal has announced that it is investing around $15 million in the production of advanced high strength steel at its Vega do Sul flat steel rolling mill in the state of Santa Catarina in southern Brazil.

The plant's existing production lines will be equipped to produce Usibor, a press-hardened boron steel with an aluminum-silicon coating used mainly in the automotive industry. Using Usibor allows manufacturers to create lighter, safer and more environmentally-friendly vehicles at an affordable cost. With a strength of 1,500 MPa after hot-stamping, Usibor is one of the most resistant steels used in automotive applications.

Usibor has been imported from ArcelorMittal plants in Europe into Brazil since 2012, while production of Usibor at ArcelorMittal Vega do Sul is due to start in the second quarter of 2015. Hot rolled coils will continue to be produced at ArcelorMittal Tubaro in Espírito Santo, Brazil, and the patented aluminum-silicon coating will be applied at ArcelorMittal Vega do Sul.

ArcelorMittal's $15 million investment is in line with the Brazilian government's stimulus program, which seeks to encourage auto makers to invest in the Brazilian automotive industry and to produce more efficient, safer, and technology-advanced vehicles.